Story of Propel: Fintech Company Behind the Fresh EBT App, helping low-income Americans Manage SNAP benefits
Story of Propel:
Founding and Vision
Propel was founded in 2014 in Brooklyn, New York, by Jimmy
Chen, a former Facebook engineer. Chen’s vision was to build software that
helps low-income Americans manage their government benefits, starting with SNAP
(food stamps), and to improve financial access and awareness for underserved
communities.
Early Beginnings
The company initially developed a website to help New York
City residents apply for SNAP benefits. Propel secured its first funding
through a crowdfunding campaign on Kickstarter, raising $11,000, but struggled
to gain further investment from traditional venture sources.
Pivot to Mobile
In 2016, Propel pivoted to a mobile solution called
FreshEBT, allowing users to check their SNAP balances without calling state
offices. The app made it easier for recipients to monitor their benefits and
was later renamed Providers.
Story of Propel: Fintech Company Behind the Fresh EBT App, helping low-income Americans Manage SNAP benefits#AI story#Propel story#investor#networth
Funding and Growth
Propel gained traction with seed funding of $4 million in
2017 from investors including Andreessen Horowitz, Kevin Durant, and Nas. A
Series A round of $12.8 million followed in 2018, helping the company expand
operations and open a Brooklyn office.
Impact During COVID-19
During the pandemic, Propel played a critical role in
helping users apply for increased food stamp benefits and other emergency
programs. The company also partnered with charities like GiveDirectly to
distribute over $10 million in cash payments to users.
Products and Services
Propel’s main offerings include the Providers app for SNAP
users and the Providers Card, a mobile banking product for government benefit
recipients. The app tracks benefits, payment schedules, and relevant news,
while also generating revenue through targeted advertisements.
Challenges and Resilience
In 2018, Propel faced challenges when Conduent, which
operates EBT networks for 25 states, accused the company of overloading its
system with data requests, temporarily affecting 80% of users. Propel addressed
the issue and maintained service continuity.
Current Status and Mission
Today, Propel serves over five million Americans monthly,
providing modern, user-friendly technology for low-income households. With
Series B funding of $50 million from investors including Salesforce Ventures,
Kleiner Perkins, and Serena Ventures, Propel continues to expand its debit
banking product and strengthen financial access for vulnerable communities.
Timeline of Propel
- 2014
– Propel founded by Jimmy Chen in Brooklyn, NY, initially as a SNAP
application website.
- 2014
– Raised $11,000 via Kickstarter crowdfunding.
- 2016
– Launched FreshEBT mobile app, later renamed Providers.
- 2017
– Raised $4 million in seed funding from top investors.
- 2018
– Series A funding of $12.8 million; Brooklyn office opened.
- 2018
– Data access issues with Conduent impacted users.
- 2020
– Assisted users during COVID-19 with emergency benefits and charity
distributions.
- 2022
– Series B funding of $50 million for expansion of debit card banking
products.
