MaxRewards, an Atlanta-based rewards startup, raised $ 3 million through a seed funding round to change the way credit card users maximize rewards.
The funding round was co-led by Dundee Venture Capital and Calano Ventures, with the participation of other leading investors such as Fintech Ventures Fund, Service Provider Capital and Nick Izquierdo, Chairman of Fleetcor. Ron Watson, partner at Dundee Venture Capital, spoke about the company’s motivation to lead the round, saying:
âMaxRewards is building the platform that people with multiple credit cards have always wanted. Gone are the days of cumbersome spreadsheets to track and optimize your credit card rewards. MaxRewards is doing all of this for you now.
The startup was founded with a mission to automate the process of maximizing credit card benefits such as miles, cash back, and cash rewards. Since January of this year, MaxRewards has seen its active user base grow by over 200% while increasing its recurring revenue by more than 10 times.
The platform developed by MaxReward provides its users with an automated solution to activate credit card offers and promotions, using data such as location to present personalized recommendations. The funding will allow the startup to expand its team, intensify its user acquisition efforts and develop solutions that go beyond credit cards. MaxRewards co-founder and CEO Anik Khan said in this regard:
âRewards are a phenomenal mechanism for acquiring, engaging and retaining customers, so it’s no wonder that rewards and cash back offers are everywhere. However, for consumers, they are presented with an overwhelming number of programs and offers to manage and use. We are building a platform that automates the maximization of rewards and cash backs across all channels and across all mediums to help consumers reap extraordinary benefits from their everyday spending.
With reports suggesting that 95% of all credit cards used in the US offer rewards, it’s no surprise that millions of users are looking to maximize their benefits. With a growing demand for advice and strategies on how to do this, MaxRewards aims to capitalize on the need by providing credit card users with an efficient and easy-to-use automated solution.