Fetch Rewards, a shopping reward points app has reportedly raised USD 240 million in debt and equity funding, valuing the company at nearly USD 2.5 billion.
The latest round of financing was led by existing investors ICONIC Capital, DST Global, and Vision Fund 2 in collaboration with new investor Hamilton Lane, an investment management firm, carrying the app's total contribution to USD 578 million.
According to sources, the SoftBank Group's Vision Fund 2-backed startup is likely to use the new funds to build enhanced features and expand operations with a recently introduced Spanish version of the app.
Fetch, which was founded in 2017, offers rewards to customers who disclose invoices from their everyday spending via the app.
It bills itself as a one-stop digital loyalty forum and generates revenue by colluding with brands centered on purchase knowledge.
Notably, customers can also use their reward points to buy from vendors who are not system partners.
Following the pandemic-ignited e-commerce growth, and buyers with a shoestring budget in an inflation-driven economy, the app's active user base more than doubled to 13 million last year.
Wes Schroll, CEO, and founder of Fetch Rewards stated that the company works directly with retailers, restaurants, and sizable consumer packaged goods companies that want to present themselves as customer loyal, and recompense them by offering Fetch points for integrating their transactions.
Schroll further added that they have no instant plans to go public anytime soon, but that's where the company would be working towards at the moment if the plan begins to be in action in the foreseeable future of 18-24 months.
It is worth noting that the platform now has over 600 partners, including well-known brands such as Unilever, Burger King, and Safeway, among others.
Source credit: