Venture

Snappy Raises $10M For Personal Corporate Gifting

Chances are that if you work for a company, especially a tech company, you’ve probably received a gift card. And while it’s nice to have some extra cash to pay for that book sitting in your Amazon cart, a startup called Snappy thinks it’s better for the team if those gifts are a little more personal.

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Founded in 2015, Snappy is an NYC-based startup aiming to liven up and personalize corporate gift giving. The company announced on Monday that it has received $10 million in venture funding from 83North, with participation from Hearst Ventures.

Snappy is tackling three main issues that it sees as current problems with gift giving: impersonal gifts like gift cards, generic gifts like mugs and stationery, and unwanted gifts (like that cell phone case you don’t need).

Originally, the company focused on consumer-to-consumer gifting with an emphasis on easy last minute, yet personable purchases–hence the name Snappy. However, it switched to an enterprise offering in 2017 to jump into the corporate gifting market, creating an enterprise dashboard which automates gift giving for important events like employee birthdays and anniversaries.

The company partners with retailers to supply its corporate clients with a marketplace of gifts to send. Recipients of a Snappy gift can choose between a small selection of gifts, resolving the issue of spending money on unwanted items.

The Snappy enterprise platform also allows companies analyze at which gifts are most commonly chosen by their employees, as well as how much the company is allocating toward gift giving overall.

“Our pricing model is very simple and very transparent. We don’t have any monthly fees, or annual fee, it’s pay as you go,” Snappy CEO and Cofounder Hani Goldstein explained, adding that the company collects a 10 percent fee on the gifts that are claimed, so companies don’t overspend on unclaimed gifts.

Snappy works with companies in many different industries including tech and healthcare, and Goldstein said that the average gift price overall is about $70 dollars, with that price going up for the average tech company. And as for retailers, the company has a close partnership with about 10 retailers but is also not limited in item selection.

“Anything that’s online we can insert into our platform, the platform is very flexible,” Goldstein said. “We don’t have a warehouse. So we don’t have the gifts set up here.”

Snappy plans to use the funding to focus on the HR space so that it can create more corporate partnerships. Further, the company is looking to expand into other use cases, including gift giving for customer loyalty, marketing, and rewards.

iStock Photo / pepifoto