Super.com aims for $85 million in equity, debt increase for new savings app

Image credit: Super.com

The current inflationary environment has us all looking for ways to cut costs and save money.

Super.com, formerly Snapcommerce, launched its cashback card SuperCash last October, allowing card users to build credit, amassing 5 million customers worldwide who have collectively saved over $150 million to date, according to CEO Hussein Fazal . Now it aims to help “everyday Americans” find deals and savings across multiple categories, including travel and shopping, through the super app.

Fazal told TechCrunch that Super.com is among some big companies, like PayPal, Uber, and DoorDash, that are bundling more and more features 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 verticals such as travel and fintech. WeChat has been able to grow its user base into billions.

“Unlike other super apps, we try to have a theme that customers can gravitate towards, and we think savings is that theme,” Fazal said. “We’re also launching now because we’re seeing a huge cross-sell rate of people coming in to buy one product and ending up buying another right now. That won’t always be the case.”

Helping the app grow is a new $85 million investment, which includes $60 million in equity and $25 million in a credit facility. This brings 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; Ancestry.com CEO Deb Liu; 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; EDC and Plaza Ventures. Existing investors including Telstra Ventures, Acrew, Lion Capital and NBA superstar Steph Curry also participated.

Fazal last raised funding in 2021 when the company was still Snapcommerce and said the fundraising environment was really different, with investors more interested in top-line growth this time and, considering what the company is doing, it will be a long-term sustainable business.

“There’s a lot of focus on unit financial trends and what the business is going to look like,” Fazal said. “Investors are asking if they give this round if there will be enough money for the company to now be a standalone business.”

For him, he believes Super.com is on its way to becoming one of those stand-alone businesses. The company grew by double digits over the past year and is on track to do well over $1 billion in gross merchandise volume and over $100 million in net income by 2023.

Fazal said the focus on top-line revenue and unit economics was why the company was able to “raise to almost double its value” from the 2021 raise and close the round on good terms and in this rather challenging fundraising environment.

He intends to deploy the new funding to product and engineering resources to develop new features for SuperCash and the overall app. The company is also researching and developing several ways to offer savings, such as essential items such as gas and groceries where prices have been affected by the 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 buying groceries.”