Accrue Savings raises $25 million
Accrue Savings, the merchant-embedded shopping experience that rewards consumers for saving, today announced it raised $25 million in a Series A funding round led by Tiger Global, with participation from Aglaé Ventures, the tech investment firm backed by Groupe Arnault, Maple VC, and notable leaders such as UPS CEO Carol Tomé and Fanatics CEO Michael Rubin.
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Returning investors include Twelve Below, Box Group, Red Sea Ventures, Ground Up Ventures, Good Friends, Silas Capital Ventures, among others.
Launched in November 2021, Accrue Savings empowers consumers to save for a purchase while earning cash incentive rewards from the brand along the way. Retailers can finally reward customers who choose saving over debt by making FDIC-insured cash contributions to a customer’s Accrue Savings account when customers meet milestones on their savings journey.
Brands that partner with Accrue Savings are seeing an immediate impact on their top-of-funnel marketing efforts. With Accrue Savings, retailers can engage with customers earlier in the consideration phase by offering a savings-based purchase plan on their website and in targeted email or SMS campaigns. By alleviating shopper concerns about debt-based payment plans partner retailers are reducing friction points between consumers and their purchases.
New retail partners now offering Accrue Savings to their customers include Smile Direct Club (NASDAQ: SDC) and Poly & Bark, with more retailers on the way. These brands join Casper (NYSE: CSPR), Camp, Eterneva and more, in providing debt-free ways for people to buy the things they want most.
“The response from retailers and consumers since launch has surpassed our expectations. We’re so pleased to find so many brands that want to offer meaningful payment diversity options for consumers,” said Michael Hershfield, Founder and CEO of Accrue Savings. “Bringing on an institutional investor like the venerable Tiger Global demonstrates the significant opportunity to embed more diverse financial technology to transform the shopping experience for a broader range of customers.”
“Accrue Savings helps brands reach more customers and gives consumers a responsible purchasing option. It’s a win-win,” said Alex Cook, Partner, Tiger Global. “Michael and the Accrue Savings team are building a unique platform and we’re thrilled to partner with them on the next stage of the journey.”
The new financing brings Accrue Savings’ total funding to nearly $30 million to date and will be used to expand retail partnerships and bolster hiring efforts across all departments, including engineering, sales and marketing.