Propel raises $4M to make the social safety net more tech savvy and user friendly

Some massive names are building an financial commitment in food stuff stamps — particularly in Propel, a startup that helps food stuff stamp recipients take care of their benefits.

Propel is announcing that it has lifted $four million in seed funding from Andreessen Horowitz, Omidyar Network, Kevin Durant’s The Durant Company and Max Levchin’s SciFi VC, as well as preceding buyers Jay Borenstein, WinWin and the Financial Answers Lab at the Heart for Financial Expert services Innovation.

“We’re energized to prove that enterprise-backed startups can responsibly handle social troubles, much too,” founder and CEO Jimmy Chen told me via e mail. “In our small business product, the greatest way to amplify our impression is to develop our small business, by obtaining a lot more end users on the platform or by acquiring them a lot more personal savings on groceries.”

Propel has made a totally free app named Refreshing EBT — the EBT refers the Electronics Positive aspects Transfer card, which is how participants in the Supplemental Nourishment Help Application (the food stuff stamp software) get their benefits. Evidently working with the EBT card generally demands men and women to get in touch with a hotline and help save their grocery receipts. With Refreshing EBT, on the other hand, men and women can verify their card harmony from their smartphone, search close by promotions, see which retailers accept SNAP and develop a buying checklist.

The startup claims a lot more than 250,000 men and women use Refreshing EBT at the very least when a 7 days. The best objective is to help end users entry a range of different services, not just food stuff stamps/SNAP, and to develop “a a lot more consumer-welcoming security internet.”

Requested no matter if foreseeable future progress will depend on the broader political landscape and on governing administration funding for these courses, Chen mentioned that SNAP hasn’t been drastically afflicted by the Trump administration — at the very least not nonetheless.

“More broadly, if general public sector support grow to be significantly less trustworthy for the duration of this administration, twenty million American families will nonetheless continue being food stuff insecure,” he said. “At Propel, our charter is to continue on to help individuals Us residents put food stuff on the desk. As a privately funded corporation, we have the potential to persist irrespective of political tendencies and to provide small-money Us residents instantly by combining the greatest general public sector, personal sector, and nonprofit sector courses to develop a a lot more helpful security internet.”

Featured Image: Propel







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