Fintech VC Deal of the Day – Propel Raises $4M Seed

Propel
Back by popular demand is our VC Deal of the Day feature, though, it may not actually be daily.  But we digress.  Fintech Propel has raised a $4M seed round from 7 investors including VC behemoth Andreessen Horowitz.  The term “seed” seems to be relative, though, because they raised another seed round in 2015 (in conjunction with a convertible note).

Anyway, this technically falls under social investing for the funders, as this free smartphone app provides a way to help food stamp recipients manage their benefits.

According to their website, “We build software for low-income Americans who are often overlooked by traditional tech innovation. Our current focus is food stamps, a $70 billion program that reaches 45 million Americans.”

FreshEBT, the app’s name, offers 5 features to its users:

  • “Check EBT card* balance in 5 seconds
  • View spending and transaction history
  • Stretch your EBT dollars with local deals
  • Find nearby stores that accept SNAP
  • Stay within budget using the shopping list

An EBT card is the government-issued debit card onto which SNAP benefits (food stamps) and other benefits are transferred each month.”

According to Crunchbase, the app is used by hundreds of thousands of Americans, and the firm that built the app is based in Brooklyn.  The site features a team of 8 employees and founders, and is currently hiring for four new positions.  We give this one a “two thumbs up” for creating a meaningful app that truly helps so many.  We hope they are able to monetize this and make it for the long haul.

Total Equity Funding
$5.4M in 3 Rounds from 9 Investors

Most Recent Funding
$4M Seed on April 27, 2017

Crunchbase Listing