Drop, a millennial-focused rewards program, today announced the launch of its platform in the US market fueled by a $5,500,000 venture capital infusion. The seed round was led by Sierra Ventures with participation from White Star Capital, ff Venture Capital, Portag3 Ventures and HOF Capital.
Drop introduces a truly seamless, cross-merchant rewards experience to the market that allows members to earn points without having to sign-up for specific brand loyalty programs. Brands featured on the platform include Sephora, Bloomingdales, The Body Shop, Amazon, Under Armour, MeUndies, Boxed and more.
“Drop offers what young people want: a seamless experience,” says founder and CEO, Derrick Fung. “We are incredibly excited to begin our expansion into the US to give millennials a platform to earn the easiest rewards they’ve ever earned, doing what they already do daily.”
This concept is a departure from the traditional rewards program, especially in the credit card rewards industry. Traditionally, credit card points have been funded by the “interchange fee,” or the fee paid by merchants to accept that brand of card at their point-of-sale. Instead, Drop is disrupting this model by pushing merchants to fund points.
“Drop is a unique concept that brings brand-agnostic rewards to millennials to give them a fun, intuitive experience they crave, while also giving brands an opportunity to hook new, loyal customers,” said Mark Fernandes, at Sierra Ventures. “We’re excited to be an integral part of Drop’s international expansion and seeing them scale beyond the massive success they’ve seen in the Canadian market.”
Drop is a personalized loyalty program focused on bringing value to millennials to make their everyday more rewarding. Designed to fit into any lifestyle, the Drop app lets members accrue points while shopping their favorite brands, even if they don’t use a credit card.
By Lolita A. Alford