British start-up Fana has opened its virtual doors with the aim of bringing together nonprofits, e-commerce and consumers on one platform.
Founded earlier this year, Fana claims to be “the world’s first and only philanthropic community for mobile native users.” It will primarily target Gen Z and millennial consumers, “a segment of the population that has a lower affinity for charitable giving but is very concerned about social and environmental issues.”
The web and mobile app solution will initially be available in the US and UK.
Fana is working with nonprofits and online merchants across a variety of industries to create a convenient, checkout-linked donation feature that’s connected to an in-app “donation wallet” owned by the consumer.
Donations are funded by the merchant, who adds a percentage of the cart size to each checkout.
Within the app, users will be able to allocate these donations to participating nonprofits, creating a wallet under “My Impact”. Users also have the option of adding a small amount of their own.
“Instead of commercial brands giving large budgets to a single charity of their choice, we will now allow consumers to make that choice personally, a dollar and a case at a time,” says Robin Yan, co-founder and CEO of Fana.
“We effectively combine the younger generation’s confidence in e-commerce brands with the power to give. This is done by providing a transparent and simple platform that makes giving easier and more rewarding. »
Fana’s proprietary API integrates with various commerce platforms and payment technology stacks.
According to a recent study by ThirdSector, 50% of younger generations have yet to choose a charity to support, saying a lack of personal choice, no visibility into what happens to their donation, no sense of reward for their efforts and the rising cost of living hampers their willingness to give.
From a merchant perspective, Amasty’s research indicates that 66% of consumers are willing to pay more for products from companies that support charities and have a social standing like theirs. Additionally, research suggests that using donations at checkout can significantly increase sales.
“The way young people view charities has changed,” says Ben Wintour, founder of Steel Warriors, a UK-based charity that tackles knife crime. “Gen Z and Millennials have a strong affection for purpose-driven brands. We’re excited to partner with Fana to tap into these hard-to-reach generations. It’s a great new way of thinking!
Fana is currently preparing to open its seed funding round. According to Crunchbase, it raised $750,000 in pre-seed.