Forage Secures $40 Million to Assist Low-Income Families with Grocery Savings

Forage Raises $40 Million to Support Grocery Savings for Families

In a significant step forward for financial accessibility, Forage, a mission-oriented financial technology firm, has announced the closing of a $40 million Series B funding round. This new capital infusion aims to enhance the services offered by Forage, particularly their consumer application that assists low-income families in managing grocery expenses more effectively.

This Series B funding was led by Mouro Capital, with investments from a range of partners including Nyca Partners, PayPal Ventures, Long Journey Ventures, Intuit Ventures, NextLadder Ventures, Pivotal Ventures, and FJ Labs. With this funding, Forage plans to focus on scaling its app, which is designed to help low-income families securely monitor their Electronic Benefits Transfer (EBT) balances and earn rewards for regular purchases.

Forage's innovative app enables users to not only track their EBT balances but also discover ways to save on groceries, allowing families to stretch their budgets further amidst rising food costs. The app has already attracted over 100,000 downloads, and the company has set an ambitious goal to reach one million families by the end of 2026.

"The cost of groceries is the number-one financial stressor in America," stated Ofek Lavian, co-founder and CEO of Forage. This highlights the urgent need for solutions that address food affordability, especially for families who face economic hardships. By simplifying access to government benefits such as SNAP, WIC, and Health Savings Accounts, Forage is working to create a more supportive environment for these families, allowing them to focus on nutrition rather than financial anxiety.

The Forage app stands out by offering a user-friendly interface and an array of features tailored to meet the everyday needs of low-income consumers. Users can securely check their EBT balances, locate nearby stores that accept SNAP, and learn about eligible items available to them. Moreover, the app provides insights into improving financial health—a crucial aspect as many Americans report that grocery prices cause them significant stress, even more than housing or healthcare costs.

Partnerships with prominent retailers and platforms are central to Forage’s mission. Currently, its payment technology operates at over 100,000 stores nationwide, including well-known brands like Dollar General and online services such as DoorDash and Uber Eats. This widespread integration demonstrates an effective bridge between retailers and consumers, enabling easier access to food resources and essential products for families reliant on government assistance.

Christopher Gottschalk, General Partner at Mouro Capital, affirmed Forage's substantial impact in the payment ecosystem for low-income families. He remarked, "Forage has built the only modern infrastructure to serve it at scale," acknowledging the company’s robust efforts in transforming how SNAP beneficiaries access their benefits and shop for food.

The crisis surrounding food affordability primarily affects families relying on SNAP, with around 40 million Americans depending on this program to foster their nutritional needs. Yet many still face barriers due to outdated systems that do not cater to modern shopping habits, especially online. By modernizing the SNAP infrastructure, Forage is reducing friction in the SNAP process, lowering incidents of fraud, and increasing the efficiency of fund usage.

Tony Rogers, Senior Vice President at Dollar General, emphasized their commitment to supporting local communities through initiatives like their partnership with Forage, which brings SNAP acceptance to online platforms. This collaboration signifies a crucial step in ensuring that families can receive affordable essentials conveniently.

As Forage continues to innovate and expand its services, it not only provides essential financial resources but also fosters a sense of community and shared responsibility towards enhancing the lives of low-income families. With a vision to redefine food access and affordability, Forage is paving the way for a more equitable future. Their ongoing efforts and commitment to modernizing payment processing for essential services affirm the company's dedication to serving those who need it most, thereby shaping a consistently supportive framework for low-income households across the nation.