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§ Private Profile · Toronto, Canada
Mobile-first coalition loyalty program for millennials. Earn personalized reward points on purchases using existing cards.
Drop has raised $187.5M across 12 funding rounds.
Key people at Drop.
Drop has raised $187.5M in total across 12 funding rounds.
Drop is a Toronto, Canada-based technology company that operates a mobile-first coalition loyalty program targeted primarily at millennial consumers. The platform allows users to earn personalized reward points on everyday purchases by linking their existing credit and debit cards to the application. Consumers can also accumulate points through social sharing, referrals, and contests, which are then redeemable for tailored rewards based on individual preferences and geographic location. The company generates revenue by partnering with consumer brands to integrate flexible, consumer-led loyalty experiences into their marketing strategies. Drop has received financial backing from venture capital firm White Star Capital, which provided pre-seed investment in November 2015 and continued its support by naming the company's chief executive as its first Entrepreneur in Residence in early 2018. The enterprise was established by founder and current Chief Executive Officer Derrick Fung.
Key people at Drop.
Drop has raised $187.5M across 12 funding rounds. Most recently, it raised $4.0M Seed in October 2024.
Drop is a Toronto-based technology company founded in 2015 that operates a personalized rewards app, allowing users to earn points on everyday purchases by linking their debit or credit cards to the platform.[1][2] Users select up to five partner brands—like Sephora, Starbucks, Uber, and Whole Foods—to automatically earn rewards without scanning receipts, entering promo codes, or joining multiple loyalty programs, solving the fragmentation of traditional rewards systems for millennials and everyday shoppers.[1][2][4] The app serves individual consumers in Canada (launched 2015) and the US (expanded 2017), with over 1 million users by early 2018, $71.3 million in total funding including a $44 million Series B in 2019, and reported revenue of $26.3 million.[1][2]
Drop's growth includes strategic partnerships, such as with buy-now-pay-later provider Sezzle to empower shoppers amid economic challenges, and acquisitions like customer analytics firm Canopy Labs in 2018.[1][2] However, as of 2025, Drop points are reportedly not redeemable, signaling potential shifts in its rewards model.[2]
Drop was founded in 2015 in Toronto, Ontario, as a response to the cumbersome nature of legacy loyalty programs, aiming to create a seamless, card-linked coalition rewards system for tech-savvy consumers.[1][2][3] The idea emerged to simplify earning rewards for millennials by leveraging linked payment cards and a mobile app, eliminating manual efforts like receipt scanning.[1][2][4] Early traction came quickly: it raised CA$1 million in initial financing in August 2015 to launch the app in Canada, followed by US expansion in October 2017 after a private beta.[2]
Pivotal moments include a $5.5 million seed round in 2017 led by Sierra Ventures (adding board member Mark Fernandes), a $21 million Series A in 2018 led by New Enterprise Associates with the Canopy Labs acquisition, and a landmark $44 million Series B in 2019 led by HOF Capital with Royal Bank of Canada as a strategic investor to fuel user growth, new partners, and market expansion.[1][2][4] These rounds propelled Drop from 500,000 users in late 2017 to 1 million by January 2018.[2]
Drop stands out in the crowded loyalty space through these key strengths:
Drop rides the wave of fintech-driven loyalty innovation, capitalizing on the shift from siloed retailer programs to unified, card-linked ecosystems amid rising consumer demand for passive, personalized rewards.[2][4] Timing aligned with millennial shopping habits and post-2015 mobile payment booms, expanding into the US as digital wallets proliferated.[2] Market forces like economic uncertainty (e.g., COVID-19) favor its model, as seen in the Sezzle partnership for interest-free installments, blending rewards with accessible financing.[1]
It influences the ecosystem by enabling brands to target high-value users cost-effectively, fostering a network effect where more partners attract more shoppers—mirroring trends in embedded finance and coalition loyalty (e.g., similar to Rakuten or Ibotta).[2] Drop's analytics edge from Canopy Labs positions it to adapt to data privacy shifts and AI personalization in retail tech.[2]
Drop's card-linked rewards pioneer status positions it for revival amid evolving fintech loyalty trends, but non-redeemable points as of 2025 suggest a pivot—potentially toward data monetization, BNPL expansions, or B2B analytics.[2] Next steps likely include new market entries, AI-enhanced personalization, and deeper retailer integrations to recapture momentum post-funding peaks.[1][4] Rising embedded finance and shoppable rewards will shape its path, evolving Drop from consumer app to ecosystem enabler, amplifying its role in frictionless commerce if it resolves redemption hurdles.[1][2] This ties back to its core promise: effortless value for shoppers in a fragmented world.
Drop has raised $187.5M in total across 12 funding rounds.
Drop's investors include Alven, Motier Ventures, Tiger Global Management, Thibaud Elziere, Onsi Sawiris, NEA, Royal Bank of Canada, Sierra Ventures, White Star Capital, Ascension Ventures, Camber Creek, Canvas Ventures.
