Series A led by NEA with participation from Sierra Ventures, Portag3 Ventures and other investors as part of the US$21 million dollar round.
When it comes to shopping, I am very sure that I am a “pro”. I always do my shopping during the sale seasons. I always look for discount codes. Not only do I look for saving opportunities, but I also look for rewards. Therefore, I usually have credit cards that collect points, and I participate in many loyalty programs – from frequent-flyer miles to the ramen reward card offered by my favourite ramen joint. I am a proven use case of a consumer who spends money diligently.
But when it comes to redeeming the rewards, the experience could be rather frustrating. I usually have to accumulate tens of thousands of points before I can redeem a decent coffee maker through my credit cards. When it comes to redeeming travel rewards, that is even worse. Blackout period or peak season requires extra points, which essentially makes the effort of collecting points not worth it.
We have known Derrick Fung, CEO and founder of Drop, for many years. So when he was about to start Drop a couple of years ago, I was fascinated by its value proposition. He envisioned Drop to be the new reward and loyalty program that any millennial will ever need. It brings value to the millennials through their day-to-day spending. In their words, Drop “is designed to fit into any lifestyle — anyone can earn rewards, even if they don’t use a credit card.”
Drop allows consumers to link their debit and/or credit cards to the platform and through their day-to-day purchase activities, they will earn many relevant rewards offered by the merchants and marketers on the Drop network.
It is a very bold value proposition and a huge undertaking for a startup, and yet Drop is on its way to reinventing the loyalty industry.
In the last couple of years, Derrick has turned this great idea into a great company. Today, more than 1 million members earn rewards at their favourite stores every day. Drop has created a 3-sided network of these three parties through their daily natural engagement on the platform. It is certainly a rising financial technology platform that is transforming the relationship amongst merchants, marketers, and consumers.
Today, we are very privileged to become an investor in Drop, along with NEA, Sierra Ventures, Portag3 Ventures, and other investors as part of its US$21 million dollar round. Look forward to supporting Derrick and his team on this journey.