November 15, 2018
Drop Technologies Inc. acquires artificial intelligence company Canopy Labs
TORONTO--Drop Technologies Inc., the first truly flexible mobile rewards program, announced today its acquisition of Canopy Labs, a YC-backed predictive analytics software company focused on improving and optimizing its clients' customer journeys.
Having raised $21 million (USD) in Series A funding led by venture capital firm New Enterprise Associates (NEA) in early 2018, Drop has had a monumental year of growth, nearly tripling its Toronto-based team, and acquiring over 150 new merchant partners that includes Casper, Jet.com, Uber Eats and Sephora. The fast-moving technology start-up has primarily focused on member-centric personalization and seamlessness, though Chief Executive Officer (CEO) Derrick Fung felt poised to level up the Drop product through a dedicated, data-centric approach. With Drop's internal repository housing over 2 Million cards, in parallel with Canopy Labs' focus on predictive modelling and data-first behavioral loyalty - the companies' synergies were hard to ignore.
"The future of the loyalty and rewards space is centered around intelligence and personalization," says Fung. "We believe the combination of our direct-to-consumer model of ingesting financial data and Canopy Labs' machine learning technology will allow us to build a best-in-class product for both consumers and our merchant partners. The calibre of their team and customers will provide us with a massive head-start and go-to-market strategy."
Canopy Labs executives Wojciech Gryc (Chief Executive Officer) and Jorge Escobedo (Chief Technology Officer) are also thrilled to bring their machine learning software to Drop to further disrupt the loyalty market. Since its inception in 2012, Canopy Labs has analyzed over $20 billion in sales data, and built over 100 million customer profiles from over 300 companies, spanning airlines, retailers, banks, sports teams, and e-commerce. Key clients have included JetBlue, Travelocity, Carnegie Hall, Bank of Montreal (BMO), Indigo, and Roots, with repeat purchases being a major focus. In one such case study, using Canopy Labs Software, a retail partner grew revenue by 480% per unique email. In this light, Gryc and Escobedo hope to perfect the Drop member customer journey, pointing out that transactional data offers the most comprehensive, 360 degree view of consumer behaviour.
"We're excited to hit the ground running, and this relationship will empower both consumers and brands," says Gryc. "Our personalization technology drives better experiences and uncovers new brand relationships. For brands, this results in long-term loyalty and repeat purchases."
Armed with the combined forces of transactional data and a plug and play style machine learning product, the new Drop will allow partners to develop 1:1 relationships with the consumers they want engagement from most. In turn, Drop members will benefit from a data-driven, deeply personalized customer journey designed to make their lives more rewarding.
Drop is available for download on iOS and Android.
Drop is a personalized rewards program focused on bringing value to its members by making their everyday more rewarding. Drop enables the consumer to earn rewards easily by simply spending with the debit and credit cards they link to the app, eliminating the need to scan receipts, enter promo codes or sign up for additional loyalty programs. This intelligent mobile app surfaces relevant offers and rewards based on what members are spending, creating a highly personalized, seamless experience for the consumer. Founded in 2015, Drop has built up a base of over one million millennials while reaching No.2 in the App Store. For brands featured on the platform like Sephora, Bloomingdales, The Body Shop, Amazon, Under Armour, Casper and Boxed, Drop helps them gain unique insights about consumers that they haven't had access to before.