Dosh, a Fintech startup based out in Austin that helps merchants and retailers reach out to their consumers via cashback offers, has raised $44 million in series, around funding from major companies like PayPal and Goodwater Capital, along with some unnamed institutional investors.
Dosh started in 2016, and lets its users register their bank cards at the startup’s mobile app, following which they receive hard cash when purchasing goods and services from stores or restaurants included in Dosh’s network. Dosh’s network is elaborate and includes big names like Nike, Target, Marriott, Papa John’s, and Walmart. It helps users see which outlets are offering cashback in brick-and-mortar stores nearby and online, along with providing a real-time view of their digital wallet and cashback offers; the cash can be credited to users’ checking account or PayPal or be used as a charity donation.
Dosh also allows users to book hotel rooms directly via the mobile app and receive cashback offers later. This not only lets Dosh helps its partner companies to entice new consumers and broaden their base and ensures that the consumers keep returning to the businesses.
The only downside to the otherwise valuable loyalty programs is the start-up’s necessity to provide its partner companies with valuable user data to let them provide their users with opportune offers directly via their phones. Since retailers want to repeat business from their consumers, they will need access to users’ shopping profiles, which is the only trade-off to make some bucks down the line.
Dosh subscribers become sustained, repeat customers faster. Those customers are visiting 29 percent more often and spending 60 percent more per visit after 60 days when compared to non-Dosh subscribers. – James Lerner, a senior product marketing director for Dosh client Walmart
Adding $44 million to the $18 million that had already been raised, Dosh now plans to expedite product development and boost its “technical capabilities,”; a huge amount in investment for a startup that launched last year.
The support from our new and existing investors means we can continue to accelerate our vision of moving billions of dollars to millions of people. We are focused on creating the leading financial services platform for brands and merchants to connect directly with their consumers. With this additional funding, we can continue hiring the highest-caliber employees and rapidly growing our customer base and merchant partners. – Dosh CEO Ryan Wuerch
With Dosh running on the same Empyr rewards network as Yelp’s program and others, it may be difficult for its users to register with a bank card already registered with any alternate programs mentioned above. But that has not stopped Dosh from drawing in 3 million new customers in the past 4 months itself, along with tens and thousands of new merchants joining in too. And with PayPal steadily investing in Fintech companies, having already invested in at least 8 companies like Raisin, Raise, Simility, and microinvestment platform Acorns in the last year alone, it comes as no surprise that it shall be interested in making an investment in Dosh too.