Millennial-focused rewards platform Drop has closed a $21m Series A funding round led by New Enterprise Associates.
Other backers to the round included Sierra Ventures, White Star Capital, ff Venture Capital, Portag3 Ventures and Silicon Valley Bank. This investment marks one of the largest Series A investments in to the Canadian FinTech sector.
Drop is a personalised rewards program, focused towards millennials, that allows consumers to earn rewards from spending with their debit and credit cards that are linked to the app. Consumers do not need to scan receipts, and can redeem points for gift cards when needed.
Founded in 2015, the company is partnered with companies including Sephora, Bloomingdales, The Body Shop and Amazon, among others.
Capital from the round will be used to support Drop’s growth plans.
NEA partner Rick Yang said, “We’ve invested in some exciting Canadian tech companies in the past, and Drop is a prime example of the growing talent and innovation emerging from Toronto. Drop’s mobile-first, direct-to-consumer approach, and focus on the millennial demographic have proven to fill a large demand in the market for consumers and brands alike.”
Alongside the raising of the capital, Drop has hired former Airbnb engineering director Ian Logan as vice president of engineering. In this new role, Logan will head the design of the company’s technology and the building of an engineering team.
The largest Series A in to a Canadian FinTech company was in 2016, with blockchain technology developer Blockstream picking up $55m. The company’s Series was led by Horizons Ventures, AXA Strategic Ventures and Digital Garage.
Deal sizes of companies within the Canadian FinTech space have been increasing since 2014, with last year.