With the current inflation, we are all looking for ways to cut costs and save some money.
super. com, formerly Snapcommerce, launched its cash-back card SuperCash last October to allow card users to build credit, amassing 5 million customers worldwide who have collectively saved more than $150 million to date, said CEO Hussein Fazal. Now it’s set its sights on helping “regular Americans” find deals and savings across multiple categories, including travel and shopping, through its super app.
Fazal told australiabusinessblog.com that Super.com is one of the big companies like PayPal, Uber and ByDash, bundling more and more functions under one app. Some, like Hyve, are also working to help people save more. However, Fazal said his company is modeling its super app after WeChat by breaking into industries such as travel and fintech. WeChat succeeded growing its user base into the billions.
“Unlike other super apps, we try to have a theme that customers can gravitate to, and we think savings is that theme,” said Fazal. “We are also launching now because we see a large number of cross-sells from people who come to buy one product and end up buying another product. That will not always be the case.”
Helping the app grow will require a new investment of $85 million, including $60 million in equity and $25 million in a credit facility. This gives the company nearly $200 million in total funding, Fazal said.
Inovia Capital led the round and was joined by new investors including Shopify president Harley Finkelstein; Deb Liu, CEO of Ancestry.com; Allen Shim, former CFO of Slack; Golden State Warriors CFO Josh Proctor; Substack CEO Chris Best; Confluent CTO Neha Narkhede; Mike Lee, co-founder of MyFitnessPal; hyphen capital letter; EDC and Plaza Ventures. Existing investors including Telstra Ventures, Acrew, Lion Capital and NBA superstar Steph Curry also participated.
Fazal last raised money in 2021 when the company was still called Snapcommerce and said the fundraising environment was indeed different, with investors this time more interested in revenue growth and, given what the company is doing, a long-term sustainable business term will be.
“There’s a lot of focus on economic trends per unit and what the business is going to look like,” said Fazal. “Investors are asking if they give this round if it will be enough money for the company to be a standalone company now.”
For him, he thinks Super.com is on its way to becoming one of those standalone companies. The company grew at double-digit rates over the past year and is on track to exceed $1 billion in gross trading volume and more than $100 million in net sales by 2023.
Fazal said focus on revenue and unit economics was why the company was able to raise “nearly double its valuation” from its 2021 raise, closing the round on good terms and in this rather challenging fundraising environment .
He plans to use the new funding for product and technical resources to develop new features for SuperCash and the overall app. The company is also researching and developing additional ways to offer savings, for example essential items such as gasoline and groceries where prices have been affected by current inflation.
“We’ve seen phenomenal growth, triple-digit month-over-month growth in users and transactions, as we’ve talked to a lot of customers to get data-driven research so we’re building something that somebody wants,” Fazal said. “Now we’re going to build America’s first savings app so our customers can think of us with every purchase, whether it’s booking travel or doing groceries.”