Propel (company)

Last updated
Propel, Inc.
Company type Private
Industry Software development
Founded2014;10 years ago (2014)
Headquarters
Brooklyn, New York City
Area served
 United States
Key people
  • Jimmy Chen (cofounder and CEO)
  • Jeff Kaiser (COO) [1]
Website joinpropel.com

Propel, Inc. is an American fintech software company that builds services for low income families. It is best known for Providers, a mobile app that allows users to track their Supplemental Nutrition Assistance Program (SNAP) balances and other government benefits. Approximately one quarter of American households receiving SNAP benefits are enrolled in the app. [2]

Contents

History

Propel was founded in 2014 in Brooklyn, New York City by Jimmy Chen, a former Facebook engineer, [3] through a fellowship at Robin Hood Foundation's tech incubator Blue Ridge Labs. [2] The company initially developed a website to help New York City residents apply for SNAP benefits. [4] The company raised $11,000 in crowdfunding from Kickstarter, but failed to get any additional funding after pitching the idea to around 60 investors. [5]

The company pivoted to FreshEBT, an app that allows SNAP users to check their SNAP balances without calling their state's benefits provider. [5] The app was released on the Google and Apple app stores in 2016. [6] The app was later renamed to Providers. [5]

In 2017, Propel raised $4 million in a seed funding round from Andreessen Horowitz, Kevin Durant, Nas, Omidyar Network, and other investors. [7] It raised a further $12.8 million in a Series A in 2018, [8] after which the company opened an office in Downtown Brooklyn. [9]

During the COVID-19 pandemic, Propel assisted users in applying for increased food stamp payments or other pandemic-specific programs. [10] The company also partnered with charities such as GiveDirectly [11] [12] to distribute over $10 million cash payments to its users. [10]

The company also runs a debit card banking product designed for government benefits recipients. The company raised an additional $50 million in a Series B funding round in 2022, most of it intended for expansion of the debit product. [2]

Products

Propel focuses on software for low-income households, especially SNAP recipients.

Data access issues

In 2018, Conduent accused Propel of overloading its network with data requests. The company, which operates the Electronic Benefits Transfer (EBT) network for 25 states, took action to block Propel's "unauthorized access" to its network. Propel estimated this affected approximately 80% of its users. [6] In California, the app was offline for more than a month. [13]

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In the United States, the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is a federal government program that provides food-purchasing assistance for low- and no-income persons to help them maintain adequate nutrition and health. It is a federal aid program administered by the U.S. Department of Agriculture (USDA) under the Food and Nutrition Service (FNS), though benefits are distributed by specific departments of U.S. states.

<span class="mw-page-title-main">Electronic benefit transfer</span> Form of U.S. state assistance

Electronic benefit transfer (EBT) is an electronic system that allows state welfare departments to issue benefits via a magnetically encoded payment card used in the United States. It reached nationwide operations in 2004. The average monthly EBT payout is $230 per participant as of 2022.

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References

  1. ↑ Rosenberg, Tina (4 February 2019). "When It's Hard to Make Ends Meet, Can Smart Apps Help?". The New York Times. Archived from the original on 6 February 2024. Retrieved 8 February 2024.
  2. 1 2 3 4 Contreras, Isabel (8 March 2022). "Fintech Startup Helps Families Keep Track Of Food Stamps And Other Government Benefits, Raises $50 Million In Series B Round Led By Nyca Partners". Forbes. Retrieved 4 February 2024.
  3. ↑ Popper, Nathaniel (6 April 2016). "Start-Ups Aim at Overlooked Demographic: The Unbanked". The New York Times. Archived from the original on 25 November 2022. Retrieved 8 February 2024.
  4. ↑ Brownstone, Sydney (7 August 2014). "A Mobile Website That Makes Food Stamp Applications A Snap". Fast Company. Retrieved 4 February 2024.
  5. 1 2 3 DeParle, Jason (8 December 2021). "How Tech Is Helping Poor People Get Government Aid". The New York Times. Archived from the original on 1 February 2024. Retrieved 4 February 2024.
  6. 1 2 Lohr, Steve (23 April 2018). "This Start-Up Says It Wants to Fight Poverty. A Food Stamp Giant Is Blocking It". The New York Times. Retrieved 4 February 2024.
  7. ↑ Ha, Anthony (27 April 2017). "Propel raises $4M to make the social safety net more tech savvy and user friendly". TechCrunch. Retrieved 4 February 2024.
  8. ↑ Ha, Anthony (14 December 2018). "Propel raises $12.8M for its free app to manage government benefits". TechCrunch. Retrieved 4 February 2024.
  9. ↑ King, Kate (15 December 2019). "Brooklyn Startups Face Speed Bumps". WSJ. Retrieved 8 February 2024.
  10. 1 2 Ovide, Shira (4 May 2020). "When Tech Helps the Vulnerable". The New York Times. Archived from the original on 2 December 2022. Retrieved 8 February 2024.
  11. ↑ Caron, Christina (17 September 2020). "How to Help Parents Who Are Struggling to Provide for Their Kids". The New York Times. Archived from the original on 25 November 2022.
  12. ↑ Lieber, Ron (30 May 2020). "How to Get Your Money to Those Who Need It More Than You". The New York Times. Archived from the original on 29 September 2023. Retrieved 8 February 2024.
  13. 1 2 Hager, Emily B.; Ritger, Clara (26 April 2018). "Propel: An App That Makes Checking Food-Stamp Balances Easier". WSJ. Retrieved 8 February 2024.
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