Online Gift Card Company Wrapp Raises $15 Million
Wrapp is a company that makes it possible to give free and paid gift cards to Facebook friends. Wrapp has announced earlier this week that they have raised $15 million in a second round of funding. The company has raised over $25 million thus far. Based in Sweden, Wrapp has grown quickly since launching in the U.S.
Wrapp plans to use the funding to hire additional talent for their San Francisco office along with other expansion. This round of funding includes participation from Qualcomm Ventures, American Express, and SEB. Existing investors that also participated includes Greylock Partners, Atomico, and Creandum.
Wrapp’s platform lets you give gift cards to your Facebook friends while allowing other friends to add money to it also. The gift cards can be redeemed through the Wrapp iPhone and Android app.
“One of the things we’ve learned is that people like giving gifts, but they also like getting stuff for themselves, that’s what started our thinking about the brand pages,” stated Wrapp CEO and co-founder Hjalmar Winbladh. “Since this is a marketing platform for retailers and brands, it’s a logical extension to give these retailers a way to communicate with you.”
Since launching in Sweden in November 2011, more than 1 million Wrapp users have gifted more than 15 million cards. The conversion rates for friend-to-friend product endorsements is around 18% compared to conversion rates of under 5% for other media forms like e-mail, display ads, and search. There are over 200 retailers that uses Wrapp’s platform including Tommy Hilfiger and Guess.