Summary:
Snappy acquires Covver, enhancing its corporate gifting platform.
Covver specializes in swag-style merchandise and offers personalized products.
The corporate gifting market is worth about $260 billion, with $50 billion in gift cards in the US.
Snappy aims to maintain magic and personalization in gifting experiences.
Over 47% of Fortune 100 companies are clients of Snappy.
The Rise of Corporate Gifting
It’s now broadly accepted that customers and employees who receive corporate gifts appreciate the brand much more, and for not a lot of outlay. The market for this has exploded, with Snappy, a New York-based company that has raised over $125 million, acquiring Covver, a corporate merchandise gifting platform.
Covver's Unique Offerings
Covver, backed by TLV Partners from Tel Aviv, has raised $7 million to date. It specializes in swag-style merchandise and offers points-based recognition solutions for employees, automatically personalizing products. For example, if someone wanted to send swag to the Editor-at-large, the system would automatically create swag with the job title on it, eliminating the need for graphic design.
A Unified Gifting Experience
In an interview with TechCrunch, Hani Goldstein, Co-Founder and CEO of Snappy, stated that Covver’s expertise in swag and company store solutions complements Snappy’s gifting experience. The platforms will be unified, with Covver effectively becoming the “swag channel” on Snappy’s platform. Goldstein highlighted Covver's innovative use of AI to create personalized swag experiences.
The Corporate Gifting Market
Goldstein noted, “There’s about $50 billion worth of gift cards in the US, and the corporate gifting market is worth around $260 billion.” Many people opt for gift cards due to indecision, making gifting feel transactional. Snappy aims to keep gifting easy, yet maintain the magic and personalization that makes gifts special.
Covver's Future with Snappy
Roee Hemed, CEO of Covver, expressed excitement about the merger, stating, “By joining forces with Snappy, we’re unlocking new possibilities for our customers, including expanded product solutions.” Snappy has secured over 47% of Fortune 100 companies as clients, including Microsoft, Amazon, and Comcast.
The Competitive Landscape
While Snappy is expanding, it faces competition from other players in the market. Sendoso has raised $152.7 million, Postal raised $46 million, and &Open from Dublin raised $26 million in 2022. Snappy’s acquisition of Covver positions it to lead the corporate gifting space with enhanced offerings and capabilities.
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