Super.com raises $65 million at $1.2 billion valuation
The Toronto-founded savings app says its paid membership is nearing 1 million users as it expands discounts and financial tools for U.S. consumers.
By Sofia Marchetti · World Affairs Correspondent
3 min read
Super.com has raised $65 million in a Series D round led by TPG, giving the savings app a $1.2 billion valuation, Fortune reported. The funding matters because the Toronto-founded company is trying to turn discounts, cash-back offers and basic financial products into a paid membership for lower- and middle-income U.S. consumers.
Fortune reported that Super.com now has about 300 employees, up from a company valued at roughly $700 million in 2022. The company said in a press release that it has passed $200 million in net revenue, grown more than 50% year over year and reached profitability.
The company sells a $15 monthly membership called Super+, according to Super.com. Members can access hotel discounts of up to 40%, cash back on routine spending, prescription savings, cash advances and tools meant to help build credit.
Super.com said in its press release that Super+ is approaching 1 million members. The company also said its products have helped customers save more than $1 billion.
A membership pitch aimed below premium credit cards
Founder Hussein Fazal told Fortune that Super.com is focused on households earning under $100,000 a year. He estimated that 100 million to 150 million Americans fall into what he called the “everyday American” category and said the company is trying to help them save.
Fortune reported that Fazal took 200 employees to Las Vegas in 2022 and asked them to cash a $200 check at a payday lender, then use what remained to buy groceries for a family for a week. The exercise was meant to give employees a closer view of the financial pressures facing the company’s customers, according to Fortune.
The pitch also reflects criticism of the rewards economy around premium credit cards. Brookings has reported that high-end rewards cards tend to benefit people with higher incomes and stronger credit profiles, while the Institute for Policy Studies has argued that lower-income consumers can help fund those benefits through the broader card-payment system.
Super.com began in 2016 as SnapTravel, a hotel-booking bot, according to BetaKit. Fortune reported that the travel slowdown during the COVID period pushed the company to rethink its customer base after it saw demand from people booking lower-priced hotels and often paying with debit cards.
New backers, executives and marketing channels
Harley Finkelstein, Shopify’s president, joined Super.com as a board observer and invested personal funds, Fortune reported. Finkelstein told Fortune that Amazon Prime helped people with means spend more easily, while Super.com is trying to make savings easier for Americans living paycheck to paycheck.
The funding round also brings Ryan Fujiu to Super.com to lead product, according to Fortune. Fujiu previously served as chief product officer at Bird and led driver growth at Uber. Fortune also reported that Michele Lee, a former Pinterest general counsel, is joining as Super.com’s general counsel.
Super.com is also NASCAR’s official savings partner, Sports Business Journal reported. Fortune said the partnership puts the brand in front of 70 million fans, a group the company sees as aligned with its target customer.
The company faces a crowded field. Research Nester projects the personal finance apps market will grow from $31.7 billion to $173.6 billion by 2035, while Fortune identified Rakuten, Capital One Shopping and Chime as competitors pursuing consumer spending and savings relationships.
This story draws on original reporting from Fortune.