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Exclusive: Kudos raises $7M for credit card rewards extension

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Oct 20, 2022
Illustration of a hand cursor holding four credit cards.

Illustration: Shoshana Gordon/Axios

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.
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