Madison-based
Fetch Rewards Inc. has closed a funding round worth $240 million, bringing the company’s total funding to over $500 million. The grocery tech startup’s valuation has also increased to over $2.5 billion,
a $1.5 billion valuation increase since this time last year.
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. It also lists over 500 global brands.
“Fetch has built an amazing, fun, world-class consumer application that is experiencing explosive growth. This capital will allow us to accelerate and scale, while also focusing on delivering best-in-class, real-time control and insights for brands,” said
Wes Schroll, CEO and founder, Fetch Rewards.
Despite being based in Madison, Fetch hires employees nationally. There are 713 Fetch employees in 43 states, including 116 in Wisconsin. Out of those 116, 48 people live in Madison and 88 are within 30 miles of the city. Local Fetch employees have access to a coworking space but have been remote for the most part since March 2020. The company donated their downtown Madison office space at 131 W. Wilson St. to Badgerland Girl Scouts later in 2020. The co-working space is located at 25 W. Main St. in Madison.
Allison Geyer, marketing coordinator with Fetch Rewards, confirmed Thursday that the company will soon move into a new office space in the Arden building on East Washington Avenue.
“We have secured another downtown spot for our new office, and it's currently under construction, projected to open this summer,” Geyer said.
Fetch Rewards’ latest funding round was led by Pennsylvania-based private markets investment management firm
Hamilton Lane. The $240 million will help drive the company’s “aggressive growth,” according to a press release. The funding round also led to partnerships with TelevisaUnivision and NielsenIQ. Through the TelevisaUnivision partnership, Fetch plans to unveil a Spanish language version of the app. NielsenIQ will collaborate with Fetch on new product capabilities and features.
“Fetch has transformed the consumer-rewards space and has emerged as a leader in the category, and we believe there’s still a significant growth opportunity ahead,” said Jeffrey Armbrister, global head of direct equity investments at Hamilton Lane.
Fetch is the fastest growing rewards app in the U.S. with 13 million active uses who have submitted more than 2 billion receipts and earned more than $340 million in rewards points. The company recently surpassed $100 billion in actionable gross merchandise value, making it the seventh largest and fastest growing retailer.
Fetch 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 that year.
