Exclusive: Kudos raises $7M for credit card rewards extension
Kudos, a credit card rewards browser extension that plans to launch a one-click checkout product, raised $7 million in seed funding, the company tells Axios exclusively.
Why it matters: American adults average 4 credit cards, creating a messy patchwork of reward programs to track manually. Kudos automates the process.
Details: Patron led the round, joined by QED Investors, SciFi VC, SV Angel, Precursor Ventures, Newtype Ventures, and Chingona Ventures.
How it works: Kudos' free extension nudges users to their card with the best benefits for a specific online purchase, whether it be cash back, travel points, travel insurance, or an extended warranty.
- Kudos earns revenue by referring customers to new credit cards based on purchase history. For example, if a consumer travels frequently, Kudos might recommend one that accrues airline points.
- Kudos also plans to earn revenue from merchant partnerships that will allow it to offer additional direct rewards.
Flashback: Kudos' business has echoes of discount browser plugin, Honey, which PayPal acquired for $4 billion in 2020.
Zoom out: Venture capital interest in one-click checkout cooled after the high-profile blowup of Stripe-backed Fast. But Kudos founder Tikue Anazodo doesn't think the space is dead.
- Previously employed at Google Pay and at Affirm, Anazodo is working on a prototype likely to launch in the next year.
- Kudos plans to attract customers with its browser extension, creating an incentive for merchants to adopt its upcoming one-click checkout product.
- Kudos currently autofills credit card information.
The bottom line: Interest in one-click checkout itself lives on when combined with other businesses.
- Notably, BNPL is effectively lending with one-click checkout.