When Anik Khan graduated from college, his first job was working on credit cards and business expenses at Accenture. He found that someone could bring in a couple of thousand dollars just by having the right credit cards and following the rewards and promotions. Back in 2017, he and David Gao got the idea for his company MaxRewards, a digital wallet app that manages credit cards and automatically activates benefits like rewards, cashback offers, and monthly credits. It also makes recommendations on which card would yield the best reward for that purchase at the point of sale.
Going after some 83% of Americans with a credit card, the app version was officially launched in 2019. The Atlanta-based company is announcing a $3 million seed round co-led by Dundee Venture Capital and Calano Ventures. Also backing the company are Techstars, Fintech Ventures Fund, Service Provider Capital, and Fleetcor president Nick Izquierdo.
Tracking his own credit cards manually before MaxRewards, Khan recalled in one year, getting $16,000 in rewards. However, utilizing those benefits was time-consuming and complex because credit card companies don’t always make tips and savings. “Other companies have tried to do something similar, but the issue is you don’t have the reward information or the offers,” Khan told TechCrunch. “If you were to aggregate this information, you still would have to activate all of these things and use them before they expired.” Users connect their accounts, and when they make a purchase,
their location is cross-referenced with the merchant, and an algorithm is applied to tell the user which card to use. The average app user has six credit cards. MaxRewards is free to download and use, and the majority of the app’s functionalities are free. Users who want additional features, like the auto-activation or rewards, can join MaxRewards Gold and are allowed to choose their own monthly price — the average is over $25 per month — based on the value they expect to gain Khan said.