Austin startup Dosh has raised an additional $44 million to expand its app for finding cash and deals.
Founded in 2016, the company offers a free app that gives consumers cash back on debit and credit card purchases when they shop, eat and travel.
PayPal, Goodwater Capital and institutional investors participated in the Series A financing round. The funding brings the total raised by Dosh, based out of Austin, to $56 million.
“We are focused on creating the leading financial services platform for brands and merchants to connect directly with their consumers,” said Ryan Wuerch, Dosh CEO. “With this additional funding, we can continue hiring the highest-caliber employees and rapidly growing our customer base and merchant partners.”
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 users buy something with the card at restaurants, stores, airlines or other merchants that offer deals through Dosh, they get an automatic cash back rebate.
The size of the rebate depends on the deal the merchant offers. That could be $6.86 off a $136.72 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, which launched the app a year ago, said that over the past four months more than 3 million new users have joined the Dosh platform.
The app includes more than 100,000 brands and merchants, and it allows merchants to target specific users with customized offers. Retailers on the Dosh platform include Sam’s Club, Cost Plus World Market, Mattress Firm and Chili’s.
In December, Dosh announced it had raised $5 million in an investment led by Goodwater Capital with participation from Extol Capital and Next Coast Ventures.
At that time, Dosh, which built its leadership team with former executives from Google, HomeAway, Indeed, RetailMeNot and Amazon, had 70 employees. Wuerch said then that the goal was to double Dosh’s workforce by the end of this year.
“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.”