MaxRewards, a rewards startup based in Atlanta, has raised $3 million via a seed funding round to change how credit card users maximize rewards.
The funding round was co-led by Dundee Venture Capital and Calano Ventures, counting with participation from other prominent investors like Fintech Ventures Fund, Service Provider Capital, and Nick Izquierdo, President at Fleetcor. Ron Watson, Partner at Dundee Venture Capital, referred to the firm’s motivation to lead the round by stating:
“MaxRewards is building the platform that people with multiple credit cards have always wanted. Gone are the days of unwieldy spreadsheets to track and optimize your credit card rewards. MaxRewards does all of that for you now.”
The startup was founded with the 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 increase by more than 200% while also having its recurring revenue grow by more than 10x.
The platform developed by MaxReward provides its users with an automated solution to activate credit card offers and promotions, using data like location to present personalized recommendations. The funding will allow the startup to expand its team, boost its user acquisition efforts, and develop solutions that go beyond credit cards. MaxRewards co-founder and CEO Anik Khan said in this regard:
“Rewards are a phenomenal mechanism to acquire, engage and retain customers, so it’s no wonder rewards and cashback offers are everywhere. However, for consumers, they are presented with an overwhelming number of programs and offers to manage and utilize. We are building a platform that automates maximizing rewards and cashback across all channels and across all mediums to help consumers earn extraordinary benefits from everyday spend.”
With reports suggesting that 95% of all credit cards being used in the United States offer rewards, it is no surprise that millions of users are looking to maximize their benefits. With an increasing demand for tips and strategies on how to do so, MaxRewards is aiming to capitalize on the need by providing credit card users with an efficient and easy-to-use automated solution.
