Madison-based Fetch Rewards recently raised $25 million, which it plans to use to double its staff over the next year.
Fetch Rewards, an app people can use to scan shopping receipts to redeem rewards points from brands, currently has 110 employees with offices in Chicago and New York City, as well as its Madison headquarters. It’s also looking to open a new office in San Francisco.
“We see a big opportunity ahead of us, and wanted to add some fuel to get there faster,” founder Wes Schroll said about raising the Series B funding round from investors Greycroft and e.ventures.
Fetch has raised $40 million to date. The company has not disclosed its valuation.
Schroll was a UW-Madison undergraduate student when he came up with the idea for Fetch Rewards, and he dropped out in 2013 to start the company. In August, the app had more than 1 million users scan a shopping receipt within 30 days.
Fetch expects to surpass 2 million monthly users by the end of the year, spokeswoman Allison Geyer said, and about 85% of users who scan one receipt for points will scan another.
When users scan a receipt, the app looks for brands partnered with Fetch Rewards that will garner points for the consumer. These brands include Kraft Heinz, Unilever, MillerCoors and Frito Lay.
Users can exchange the points for gift cards, with an exchange rate of about 1,000 points for every dollar. Points earned from different items range from 500 points for Velveeta cheese to 1,500 points for a six-pack of Cottonelle toilet paper to 2,000 points for a 12-pack of Leinenkugel’s beer.
The app is available for free on both iOS and Android phones.
“If we want to create the kinds of high-growth companies with high-paying employment, we need to have venture capital,” the head of one venture capital firm said.
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