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Drops develops a mobile language learning application that facilitates casual vocabulary acquisition for individual users worldwide from an undisclosed headquarters location. The digital platform utilizes visual flashcards, native speaker audio pronunciation, and gamified study sessions to help consumers build linguistic fluency efficiently. The software currently provides educational content and spaced repetition training across a diverse portfolio of over 40 different foreign languages. Operating within the broader global education technology sector, the enterprise monetizes its consumer product through a standard tiered freemium business model. While the core mobile application remains accessible at no cost, the organization generates recurring revenue by offering premium subscriptions that provide advanced learning features and uninterrupted ad-free access. Recognizable institutional investors, financial scale metrics, the original founding year, and the identities of the primary founders remain publicly undisclosed at this present time.
Drops has raised $1.0M across 1 funding round.
Drops has raised $1.0M in total across 1 funding round.
Drop Technologies Inc. (Drop) is a Toronto-based fintech 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][3] Users select up to five partner brands—like Sephora, Starbucks, Uber, or Whole Foods—and 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 by Akhil Kudian, who identified the pain of disjointed loyalty programs and built a coalition-style app to streamline rewards via card-linked offers.[1][2][3] Headquartered at 120 Front St East in Toronto, the company launched in Canada in August 2015 with CA$1 million in initial financing, quickly gaining traction by targeting millennials seeking effortless perks.[1][2]
Pivotal moments include a $5.5 million seed round in 2017 led by Sierra Ventures (adding board member Mark Fernandes), US market entry after a private beta, and explosive growth to 500,000 users by late 2017 and 1 million by January 2018.[2] A $21 million Series A in 2018 from New Enterprise Associates funded the Canopy Labs acquisition, while the 2019 $44 million Series B—led by HOF Capital with RBC as a strategic investor—accelerated partner additions, user growth, and market expansion.[1][2][4]
Drop rides the fintech rewards and card-linked marketing wave, capitalizing on the shift from siloed loyalty programs to unified, app-based ecosystems amid rising consumer demand for frictionless perks.[1][2] Timing aligned with millennial spending habits and post-2017 BNPL growth, positioning it in a market where fragmented rewards frustrate users—Drop's model influences retailers by offering data-rich exposure without new sign-ups.[2][4]
It contributes to Canada's fintech ecosystem as a top-funded player, driving competition in personalized commerce and expanding US reach, though non-redeemable points as of 2025 highlight challenges in sustaining engagement amid economic pressures.[1][2]
Drop's card-linked innovation positions it for revival in a rewards-fatigued market, potentially through renewed point redemption, AI-driven personalization, or deeper BNPL/embedded finance ties.[1][2] Trends like economic recovery and open banking could boost growth, evolving its influence toward a full-fledged commerce platform. Watch for partner expansions or exits to solidify its role in effortless consumer fintech.
Drops has raised $1.0M across 1 funding round. Most recently, it raised $1.0M Seed in May 2021.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| May 1, 2021 | $1M Seed | — | Bankless Ventures, CoinFund, Divergence Ventures, Dragonfly Capital, Mechanism Capital, Meta Change Capital, Multicoin Capital, Pioneer Fund, South Park Commons, Verified Capital, Ajit Tripathi, Balaji Srinivasan, Luis Cuende, Mariano Conti, Preethi Kasireddy, Stani Kulechov, Stefan George | Announced |
Drops has raised $1.0M in total across 1 funding round.
Drops's investors include Bankless Ventures, CoinFund, Divergence Ventures, Dragonfly Capital Partners, Mechanism Capital, Meta Change Capital, Multicoin Capital, Pioneer Fund, South Park Commons, Verified Capital, Ajit Tripathi, Balaji Srinivasan.
