Gyft has raised $5 million in a first round of funding to help digitize gift cards on mobile devices so that you don’t have to carry them around. Gyft works with over 300 retailers and brands can use the service for offering targeted promotions. Over $10 million worth of 200,000 plastic cards has been added to Gyft in the past year. A new gift cards has been added every two minutes. This round of funding was provided by A-Grade Investments, Social + Capital Partnership, Karlin Ventures, and several others.
According to Gyft co-founder, customers are more likely to use the gift card and spend 2-3 times the value of the gift card if it is on their phone, according to Gyft co-founder CJ MacDonald. Gyft was a finalist at TechCrunch Disrupt in 2012 and they raised funding from Google Ventures, Founder Collective, and 500 Startups.
Gyft now allows users to buy items through the web or mobile application. The company also launched a Gift Card Register, which allows consumers to personalize registries for birthdays, weddings, bridal showers, and baby showers.