Drop Technologies Inc., a Toronto-based mobile rewards platform, said it raised $44 million in Series B funding, led by HOF Capital and assisted by a new strategic investor, Royal Bank of Canada. 

The company, which allows users to earn cash rewards from more than 300 merchant partners, said the funding will be used to enhance the company's machine learning capabilities, expand its existing offices in Toronto and New York, and expand into new markets, including the U.K. and Australia.

"By applying machine learning to our users transactions, we are able to surface relevant, personalized offers for consumers as well as help marketers gain a more complete understanding of their customers and competition," Derrick Fung, CEO of Drop, said in a company release. "This is a big win for the brands on our platform and also the millions of smart shoppers who are looking for ways to earn rewards and level-up their shopping experience."

Drop acquired machine learning and predictive analysis firm Canopy Labs in late 2018, and is using that technology to enhance its loyalty platform. 

Drop customers earn points when they shop with the company's mobile app and they can redeem points to purchase gift cards with partner stores, such as Starbucks, Sephora and Uber Eats. 

The funding round was backed by a series of existing investors, including New Enterprise Associates, Sierra Ventures and White Star Capital. 

Cover image courtesy of Drop Technologies.