An Austin startup that says it can get you cash back on debit and credit card purchases has raised $2 million to launch its service.
Dosh, founded a year ago, is preparing to release its free app, which it says finds cash and deals for consumers when they use their cards shopping, eating and traveling.
The company said the new $2 million infusion brings the total it has raised to $6 million. It has not disclosed the names of the investors.
The company says it is preparing to complete beta-testing.
The app works like this: Users connect a debit or credit card to their account in the app. 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 $327 purchase at Macy’s to $36 off a $236 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 100,000 brands and merchants, and it allows merchants to target specific customers with customized offers.
The company was founded by Ryan Wuerch and Mike Lohner. Wuerch was previously founder and CEO of Solavei, a Seattle-based company that offered 4G wireless service and offered cash rewards to customers who referred new business. Solovei filed for Chapter 11 bankruptcy in 2014 and merged with a European business as it merged the following year.
Lohner is former CEO and current chairman of Stella and Dot Family of Brands. Stella and Dot sells fashion accessories, jewelry and skin care using a home-based model and independent business owners.
Other members of the executive team hail from Amazon, American Express, Bain Consulting and First Data, the company said.
“Our executive team has been instrumental in bringing Dosh to market and attracting high-caliber investors to our company,” Wuerch said in a statement. “The expertise we have across many different verticals has enabled us to develop a first-of-its-kind app and technology ecosystem.”
Dosh, which has 38 employees, said it will use the new funding to build out its technology platform, expand merchant participation and add users.
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