In the landscape of American retail, the Supplemental Nutrition Assistance Program (SNAP) has long been treated as an operational afterthought—a technical hurdle to be cleared at the point of sale rather than a core component of customer strategy. Today, one in eight Americans relies on SNAP benefits to put food on the table, and roughly one in two will qualify for assistance at some point in their lives. For these millions of households, navigating the intersection of government benefits and retail infrastructure is not a niche experience; it is a fundamental, recurring reality of daily life.
Forage, a fintech startup that recently secured $40 million in Series B funding, is betting that this demographic represents the next great frontier in retail technology. By shifting the narrative from "benefit processing" to "affordability infrastructure," the company aims to build a comprehensive platform that transcends the limitations of traditional EBT (Electronic Benefit Transfer) systems.
The Paradigm Shift: From Point Solution to Platform
For years, the technology surrounding SNAP has been stagnant. For most retailers, integrating EBT was a compliance-driven checkbox—a way to accept government tender that was strictly isolated from the broader, more sophisticated digital shopping experience.
Forage CEO Ofek Lavian argues that this narrow view ignores the lived reality of the modern SNAP recipient. "We don’t view ourselves as an EBT point solution," Lavian stated in a recent interview. "We view ourselves as building a network for affordability."
This distinction is the cornerstone of Forage’s business model. The company is not merely facilitating transactions; it is positioning itself as the connective tissue between price-conscious consumers and the retail environments they frequent. The $40 million infusion of venture capital is a strong signal that investors agree: the real value lies not in the processing of the benefit, but in the creation of a scalable platform designed for the households that must stretch every dollar to make ends meet.
Chronology: From Instacart to Infrastructure
The genesis of Forage is rooted in Lavian’s previous professional chapters, which provided him with a front-row seat to the friction inherent in digital grocery. After cutting his teeth in payments technology at Uber, Lavian joined Instacart, where he spearheaded efforts to enable SNAP acceptance for online grocery orders.
At Instacart, Lavian witnessed firsthand the disconnect between the high-tech, seamless experience promised to premium consumers and the clunky, often exclusionary experience offered to those using public benefits. He observed that many of the assumptions held by retail executives—such as the idea that SNAP recipients prefer in-store shopping or lack access to digital tools—were fundamentally flawed.
Recognizing that the obstacles to grocery access were systemic, Lavian left to found Forage. The company’s trajectory has been one of rapid maturation:
- Early Stages: Focused on bridging the technical gap for merchants, allowing them to accept EBT payments in digital storefronts.
- Series A/Growth: Proving the viability of the model by partnering with major grocers and regional players to integrate EBT into their e-commerce ecosystems.
- Series B and Beyond: Transitioning into a holistic "affordability network" that includes mobile applications for balance tracking, expanded support for WIC (Women, Infants, and Children), and infrastructure for other government programs like HSAs and FSAs.
Supporting Data: The Anatomy of a Vulnerable Consumer
The urgency behind Forage’s mission is supported by stark demographic and geographic data. Approximately 33% of SNAP recipients live in identified "food deserts," where access to a full-service grocery store requires significant travel. Furthermore, 20% of the SNAP population lives with a disability, making physical trips to the store an arduous, and sometimes impossible, task.
For these individuals, the "convenience" of online grocery is not a luxury; it is a necessity. PYMNTS research highlights that lower-income consumers are increasingly turning to digital channels not just for convenience, but for price discovery. Online platforms allow these shoppers to compare prices, hunt for promotions, and avoid the "transportation tax" of visiting multiple physical stores—costs that can be prohibitive for families operating on a tight monthly budget.
The financial pressure is predictable and acute. The average family of four receives roughly $700 in EBT benefits monthly. Data shows that these benefits are typically depleted by the second half of the month. This creates a "valley of scarcity" where households must navigate the gap between their benefits running out and the next deposit. Forage aims to address this period by providing tools that surface savings, track balances, and connect consumers with retailers who understand the specific needs of this segment.
Official Responses and Strategic Implications
When asked whether merchants should view SNAP acceptance as a tool for customer acquisition or retention, Lavian dismissed the dichotomy. "It’s both," he asserted. "If you aren’t catering to this consumer, that customer is not coming back to shop in your store."
For retailers, the implication is clear: SNAP is a strategic asset. By integrating Forage’s technology, merchants can build loyalty among a large and resilient customer base. Those who treat SNAP as an afterthought risk losing market share to competitors who understand that for the modern, price-sensitive shopper, the ability to use benefits online is a primary driver of store preference.
Furthermore, Forage is expanding its "rails" to handle more than just SNAP. By moving into HSAs, FSAs, and WIC, the company is standardizing the complexities of product eligibility, compliance, and transaction routing. By solving these challenges once, Forage creates a plug-and-play architecture that can be extended to any program that requires restricted payment handling.
The Mandate for Integrity: Addressing Fraud
Perhaps the most significant aspect of Forage’s expansion is its uncompromising stance on security. In the current environment, EBT fraud is a growing concern, with bad actors often targeting the most vulnerable populations.
Lavian is emphatic: "We shouldn’t be tolerant of any level of fraud in EBT. The total number of dollars that are stolen by bad actors from vulnerable American families should be zero."
Forage is advocating for a standard of security in government benefit programs that matches the sophistication of traditional private-sector credit and debit card networks. The argument is that if the financial services industry has the technology to protect high-net-worth transactions, that same level of rigor must be applied to government benefits. For families living on the edge of poverty, the loss of even a small fraction of their monthly benefit can have devastating, immediate consequences.
The Future: A Broader Ecosystem
As Forage looks toward its next phase of growth, the company is positioning itself as more than a payments company—it is an ecosystem provider. With the recent launch of a consumer-facing app, Forage is providing households with direct visibility into their financial health.
The ambition is to create a digital environment where the "job to be done"—stretching a food budget—is made easier through technology. As the economy shifts, and as more families cycle in and out of the SNAP program, the demand for this type of infrastructure will only grow.
Forage’s $40 million Series B is not just an investment in a software product; it is an investment in the belief that the "mainstream" consumer is changing. Retailers that recognize this shift—and that partner with providers capable of building truly accessible, secure, and helpful financial networks—will be the ones that define the future of grocery retail. By treating the SNAP recipient as a valued, data-driven consumer, Forage is helping to redefine the social contract between the American shopper, the retail industry, and the government programs that support them.
