Propel, the company behind the Fresh EBT app, has raised $12.8 million in Series A funding. This round of funding was led by Nyca Partners. Andreessen Horowitz, Kleiner Perkins, and Omidyar Network also participated in this round. And the company also received support from individual investors such as Alexa von Tobel and Thirty Five Ventures (investment company run by Kevin Durant and Rich Kleiman).
The Fresh EBT app (EBT stands for Electronics Transfer Benefit card) is used by Americans to manage food stamps and SNAP balance. And the app is used for finding stores that accept food stamps. Through the free app, users are able to track spending. Propel generates revenue through grocery coupons, employers, and organizations who use it for promoting opportunities to improve financial health.
Photo: Fresh EBT app / Credit: Propel
“Our investors are world-class experts in their respective fields. They share an understanding of the challenges of low-income Americans and a belief that Propel can build a massive business by fighting poverty,” said Propel CEO Jimmy Chen in a statement. “We’re thrilled to have these partners on board.”
Propel’s Fresh EBT is used by more than 1.5 million Americans every month. And more than 30,000 people have applied for jobs this year that were discovered through the Fresh EBT app.
“It’s not hard to see the huge opportunity in building better financial services for low-income people,” added Nyca Partners managing partner Hans Morris. “We just haven’t seen many companies in this space that have an opportunity to have such a large impact at massive scale. That’s why we’re so excited to invest in Propel.”