Israeli startup Snappy, which developed a platform for sending gifts online, announced late last week the closing of a $70 million Series C funding round. The investment was led by GGV Capital, with participation from existing investors Saban Ventures, 83North, and Hearst Ventures.
Revenue grew by 800%
Enterprises and companies in the U.S. shed out over $125 billion in gifts for their employees and customers. Private individuals will spend close to $375 billion on presents and gifts. Despite the potential billions in earnings, the system is not without flaws, especially when dealing with refunds and returns - estimated costs reach more than $100 billion annually in the U.S. alone.
Israeli startup Snappy has a solution, and developed a curated gift platform, where recipients can choose their gift before it’s delivered. The Snappy platform uses its proprietary algorithm combined with a library of gifts from popular brands to deliver a curated experience. For organizations of all sizes, the system seamlessly integrates into existing HR platforms, and uses automated curation technologies for corporate gifts - sent usually for holidays, promotions, birthdays, etc.
The Snappy platform also equips decision-makers with real-time feedback and insight to better understand the impact of certain gifts recommended by the system. Additionally, the platform helps companies understand exactly how much money is spent on corporate gifts and how to better budget for the subject.
The Israeli-founded, NYC-based startup has already partnered with some familiar names, including Microsoft, Comcast, Adobe, and Uber, which represent only a fraction of the more than 1,000 Snappy customers in the U.S. alone. According to Snappy, its corporate customers have sent over a million gifts during the last six months.
In a chat with Geektime, CEO and co-founder Hani Goldstein explained that the company’s algorithm and the fact that gifts are shipped directly to employees’ homes, are two main factors that differentiate Snappy from competing gift card solutions. According to Goldstein, this was a definite contributor in the company experiencing 800% year-over-year growth, in addition to securing a 5-star consumer rating.
“Our customers are looking for innovative and effective ways to show appreciation for their employees in an increasingly digital world. Part of our success is our focus on the fun of the experience and creating magical moments that will surprise and delight recipients . Our goal is to become the go-to global gifting hub for anyone who wants to send a gift.” said Snappy CEO, Hani Goldstein.
Snappy was founded in 2015 by Goldstein and Dvir Cohen. So far the company has raised $95 million over the last 9 months, bringing its total to $105 million to date. Snappy is headquartered in NYC, with additional locations in Tel Aviv and London. Snappy will use the capital to increase its headcount by 200 new employees, alongside expanding into new markets, exploring acquisitions, and further developing its proprietary product.
Hans Tung, managing partner at GGV Capital, whose portfolio includes the likes of Affirm, Airbnb, Coinbase, Peloton, Slack, StockX, TikTok and Wish, will join Snappy’s board as part of the round. The company has also added two new Executives to its leadership team -- Alison Sagar, former UK CMO from PayPal and Amy Stoldt, former SVP of people from Peloton.