Based in Austin, Texas, fintech app maker Dosh announced this week it had raised US$40mn in series B funding. Reportedly, in 2019, $231bn will be spent on advertising globally. According to Dosh, a large portion of that money will be wasted due to mis-or-no attribution. The Texan startup will use the $40mn to continue to bring about “a dramatic shift in how merchants spend advertising dollars by giving them a new way to reach and reward consumers.”
"Consumers are tired of having their data used and sold to drive advertising revenues for companies. Dosh moves advertising spend directly into consumers' wallets," said Ryan Wuerch, founder and CEO at Dosh. "We are empowering consumers for the first time to benefit from their own data, while bringing merchants new customers and greater revenues."
With brand partnerships ranging from Dunkin’ and Pizza Hut to Sam’s Club and Sephora, Dosh provides its users with data-driven cashback based on purchase behaviour. The app’s software automates performance driven campaigns leading to new customers, winning back lapsed customers, increased frequency and higher average order value, as well as creating social engagement to increase brand visibility and new customer acquisition for merchants.
"Dosh's mission is to put billions of dollars of wasted advertising spend directly into consumers' pockets," said Chi-Hua Chien, co-founder and managing partner at Goodwater Capital. "They are the clear leader in the rapidly growing card-linked offers market and we are confident this latest round of funding will accelerate their achievement of that mission."
$20mn of the total funding is in equity, with the remaining $20mn in venture debt. The financing was led by Goodwater Capital and Western Technology Investment (WTI), with participation from investors PayPal, BAM Capital and Anthem Venture Partners.