Technology Targets Its $85 Million Equity, Rising Debt In New Super Savings App

Today’s inflationary environment has us all looking for ways to cut costs and save some money., formerly Snapcommerce, launched its SuperCash cash back card last October so cardholders could build credit, amassing 5 million customers worldwide who have collectively saved more than $150 million to date. , according to CEO Hussein Fazal. Now he has his sights set on helping “ordinary Americans” find deals and savings across multiple categories, including travel and shopping, through his super app.

Fazal told TechCrunch that is among some big companies, like PayPal, Uber, and DoorDash, that are packing more and more features into a single app. Some, like Hyve, are also working to help people save more. However, Fazal said his company is modeling its super app after WeChat by getting into verticals like travel and fintech. WeChat has been able to grow its user base to billions.

“Unlike other super apps, we’re trying to have a theme that customers can gravitate towards, and we think savings is that theme,” Fazal said. “We’re also launching now because we’re seeing a huge cross-sell rate of people coming in to buy one product and ending up buying another right now. That will not always be the case.”

Helping the app grow is a new $85 million investment, including $60 million in equity and $25 million in a line of credit. This gives the company almost $200 million in total financing, Fazal said.

Inovia Capital led the round and was joined by new investors, including Shopify President Harley Finkelstein; CEO Deb Liu; Allen Shim, former CFO of Slack; Golden State Warriors CFO Josh Proctor; Substack CEO Chris Best; confluent CTO Neha Narkhede; Mike Lee, co-founder of MyFitnessPal; Capital hyphen; EDC and Plaza Ventures. Existing investors also participated, including Telstra Ventures, Acrew, Lion Capital and NBA superstar Steph Curry.

Fazal last raised funds in 2021 when the company was still Snapcommerce and said the fundraising environment was really different, with investors more interested in top-line growth this time around and, considering what the company is doing company, it will be a sustainable business in the long term. .

“There is a lot of focus on the economic trends of the unit and what the business will look like,” Fazal said. “Investors are asking if they give this round if it will be enough money for the company to now be a standalone business.”

To him, he believes that is on its way to becoming one of those independent businesses. The company grew double digits over the past year and is on track to surpass $1 billion in gross merchandise volume and more than $100 million in net revenue by 2023.

Fazal said the focus on top-line revenue and unit economics was the reason the company was able to “raise almost double its valuation” since the 2021 raise and close the round on good terms and this year. quite challenging fundraising environment.

He intends to implement the new funding into product and engineering resources for the development of new features for SuperCash and the app in general. The company is also doing R&D on additional ways to offer savings, for example essential items like gas and groceries whose prices have been affected by current inflation.

“We’ve seen phenomenal growth, triple-digit month-over-month growth in users and transactions, as we’ve talked to a lot of clients to get data-driven research so we can build something somebody wants,” Fazal said. “Now we’re building America’s first savings app so our customers can think of us for every purchase, whether it’s booking a trip or buying groceries.”

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button