Madison-based Fetch Rewards Inc. has raised $210 million, bringing the grocery tech startup’s valuation to more than $1 billion – a rare milestone for midwestern startups.
The Series D round of funding was raised by SoftBank Vision Fund 2, with participation from existing shareholders including ICONIQ, DST, Greycroft and e.ventures, Fetch Rewards announced today.
Fetch Rewards is an app that asks users to upload pictures of their grocery receipts in return for points that can be redeemed for rewards at those retailers. The startup has partnerships with thousands of grocery stores, including Kroger, Costco, Aldi, CVS and Target.
The company was founded in 2013 by former University of Wisconsin-Madison student Wes Schroll, who is also Fetch Rewards’ CEO.
Schroll says the COVID-19 pandemic has created a sudden and significant shift in consumer shopping habits, adding that food retail revenue increased over 25%, total household grocery bills increased, and long-term grocery trends were reversed.
“Innovation, responsiveness, and speed have been key to our growth over the past year,” Schroll said in a statement. “COVID-19 has forced us to adapt to the feedback that our shoppers are giving us. We’ve always cared about what our shoppers say, we exist to make their shopping experiences better. They help to inform a lot of our product strategy.”
Fetch Rewards has raised $328 million to date with their latest round of funding raising nearly $80 million in November. In February, the company hired Nupur Sadiwala to be its chief financial officer.
Fetch Rewards has 19 million downloads and 7 million active users, has processed nearly one billion receipts, and has delivered more than $120 million in savings to its shoppers, according to a press release.
The company appeared on the Inc. 5000 “fastest growing private companies in America” list in 2020, ranking 116th with a three-year revenue growth of 3,161% – the highest-ranking company in Wisconsin last year. Fetch Rewards made its Inc. 5000 debut in 2019, ranking 68th with a three-year revenue growth of 4,323% growth.
“We believe Fetch Rewards’ platform delivers a great experience for consumers by rewarding them for their loyalty to their favorite brands,” SoftBank Investment Advisers partner Tom Cheung said in a statement. “We look forward to partnering with Wes and the team as they continue to innovate, scale and expand into new markets.”
