Austin startup Dosh has raised an additional $5 million as it prepares to launch its app for finding cash and deals.
Founded a year ago, the company offers a free app that gives consumers cash back on debit and credit card purchases when they shop, eat and travel.
The investment was led by Goodwater Capital with participation from Extol Capital and Next Coast Ventures. The company said the new funding brings the total it has raised to $18.4 million.
The Dosh app works like this: Users connect a debit or credit card to their account in the app, which is downloadable at Apple’s App Store and Google’s Play Store.
When the user buys something with the card at restaurants, stores, airlines or other merchants that offer deals through Dosh, the user gets an automatic cash back rebate.
The size of the rebate depends on the deal the merchant offers. The company offers examples such as $5 off a $148.22 purchase at Forever 21 to $36 off a $236.85 bill at Hilton Hotels. Users get a notification of the rebate through the app. Dosh gets a cut off the top of the overall deal.
Dosh says the app includes more than 100,000 brands and merchants, and it allows merchants to target specific users with customized offers.
The company will use the funding to continue to build out the app and to make a marketing push next year, said Dosh founder and CEO Ryan Wuerch.
Dosh has grown from 25 employees six months ago to 70 today. The plan is to have 100 workers by the end of March and 250 by the end of next year, Wuerch said.
The company is hiring in engineering and data science as well as sales and marketing.
Wuerch said Dosh is benefiting from Austin’s long-standing depth in business software, which it is tapping into to build its platform, as well as the region’s emerging pool of consumer technology talent.
Dosh built its leadership team with former executives from Google, HomeAway, Indeed, RetailMeNot and Amazon, and is seeing a growing base of engineers with consumer tech expertise, Wuerch said.
“Austin has been known as a great city for engineering on enterprise and B-to-B software,” he said. “But there has been a broadening in consumer tech happening here, and we are now seeing incredibly smart engineers coming to the company that are very quickly bringing new innovative technology from a consumer side.”
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