Toronto-based mobile rewards platform Drop has acquired fellow Canadian startup Canopy Labs.
A Y Combinator-backed company, Canopy Labs uses predictive analytics to help businesses get a better profile of customers, giving them insight into how they can track, optimize, and personalize their customer journeys. Since its launch in 2012, Canopy Labs has analyzed over $20 billion in sales data, and built over 100 million customer profiles from over 300 companies like JetBlue and Travelocity.
In January 2018, Drop raised a $25.8 million Series A, and has acquired over 150 new merchant partners like Casper, Jet.com, Uber Eats, and Sephora.
Drop’s platform allows users to to link their credit or debit to the app, and earn points for whenever they spend with Drop’s merchant partners. As Drop’s internal repository currently houses over 2 million cards, there were parallels with Canopy Labs’ focus on predictive modelling and improving behavioral loyalty with data.
“The future of the loyalty and rewards space is centered around intelligence and personalization,” said CEO Derrick 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.”
“We’re excited to hit the ground running, and this relationship will empower both consumers and brands,” said CEO Wojciech Gryc. “Our personalization technology drives better experiences and uncovers new brand relationships. For brands, this results in long-term loyalty and repeat purchases.”