Chicago startup Raise has a new feature that gives you cash back when buying full-price gift cards on Raise's marketplace.
The feature, called Raise Pay, allows users to earn as much as 10% back when they purchase gift cards at full price on the Raise platform. The cash can be used on future Raise purchases, whether for regular gift cards on Raise Pay or discounted cards.
Raise Pay is a new twist on the startup's primary offering---a marketplace where users can buy and sell discounted gift cards. With Raise Pay, users purchase gift cards directly from the retailer at full price, earning rewards on the back end much like a traditional loyalty program.
The feature was born out of user feedback, as some shoppers had to purchase multiple Raise gift cards at a time to buy the items they wanted, CEO Jay Klauminzer said in an interview. Raise Pay has been a hit with users since Raise first began offering the cash back option in November, Klauminzer said.
"The consumer adoption was fantastic," he said. "We're talking triple digit growth month-over-month. We realized it needed to be a core part of our focus and make it front and center for consumers."
Klauminzer, a former VP at DoorDash, joined Raise last fall, taking over for founder George Bousis, who transitioned to executive chairman.
Raise, founded in 2013, grew to one of Chicago's most high-profile startups, raising more than $145 million in venture capital from big-name investors like NEA, Accel and PayPal. However, the growth hasn't come without speed bumps. Klauminzer said Raise currently has around 120 employees, down from its height of around 300, though Klauminzer said Raise expects to be at 150 employees in the next six to eight months.
"The biggest thing I had to focus on coming in was ... just turning us into a really good, focused operating business," he said.
Nearly 3 million people have bought or sold gift cards on Raise to date, and Raise has more than 500 retailers on its platform.
Beyond simply selling gift cards, Raise wants to be a go-to mobile payment method for consumers. Similar to how Starbucks has created a mobile payment and loyalty program, Raise wants to bring those same efficiencies to customers across a range of different brands, and help companies compete against Amazon by driving more customers in-store and online.
"We want you to check the Raise app before you shop anywhere," Klauminzer said.
