Drop
Mobile-first coalition loyalty program for millennials
- Derrick Fung, CEO
- Toronto, Canada
- November 2015
- Current
- Pre-Seed
The Investment
Drop is the first flexible consumer led intelligent mobile rewards platform focusing on personalized member experiences.
In the United States alone loyalty programs are estimated at $30bn each year, with millennial coalition loyalty programs estimated at $6.8bn.
Drop’s millennial-targeting mobile loyalty app is aiming to shake things up. The company has partnered with innovative brands to provide its users with a simple way to earn reward points through purchases made with their existing credit and debit cards. As well as transactions, points can be earned by participating in contests and social sharing, before being redeemed on rewards tailored to each user’s needs, tastes and location. With the option to earn extra points by getting friends on board and the ability to see what they’ve won, Drop has created a socially-engaging platform disrupting the market.
Why We Invested
White Star Continuing to Back Drop and our First EIR Derrick Fung
While White Star normally invests in startups that have some early traction, we proactively knew we would make an exception for our EIR: this was precisely the goal of our EIR program! The Drop concept fit nicely into our theses of the Age of Context, the Digitalization of Finance, and the Disruption of Commerce, and so we invested in Drop back when it was just an idea, a deck and a small team passionate about conquering the world of loyalty.
Read the postIn the News
A $44M Series B Drop in the bucket for millennial loyalty
Commerce and marketing are radically changing these days. Consumers are increasingly looking for brands they identify with, while at the same time, the cost of acquiring users is increasing year-over-year for marketers. For brands, that math makes marketing complicated: they want to reach the right customers with the most efficient acquisition channels in order to drive the best return. Toronto-headquartered Drop thinks it has a formula — and one that might put some dollars (Canadian and U.S.) in consumers’ pockets. Drop is a mobile app that scans your credit card purchases and then proceeds to give you offers on things you might want to spend money on.