Wrapp Wraps $15M Funding Round

By David Cohen 

A series-B funding round totaling $15 million? That’s a Wrapp for the social gift card provider, which announced the closing of the funding round Thursday.

Existing investors Greylock Partners, Atomico, and Creandum participated in the funding round, along with newcomers American Express, Qualcomm Ventures, and SEB Private Equity.

Wrapp said the funds will go toward expansion, including staffing its U.S. operations in San Francisco.

Here’s how Wrapp works: Users who have installed the iPhone or Android application or accessed the Wrapp website receive reminders about their Facebook friends’ birthdays (although gift cards can be sent for any occasion). Wrapp then matches the social profiles of targeted friends with available partners — more than 200 national and multinational retailers — that match their demographics, and users can send free gift cards that the partners make available, or add on to the amounts.

Wrapp Co-Founder and CEO Hjalmar Winbladh said:

Before Wrapp, very little money was going into giving brick-and-mortar merchants the kind of consumer activation and loyalty tools that are now commonplace for ecommerce sites. In almost two years of operation, we’ve learned that people who love shopping love getting exclusive promotions for themselves just as much as they love giving gifts. Over the coming year, we’re confident that social shopping will become a highly targeted and personal media channel connecting consumers with brands they love, and we want to become the default destination for that.

Reid Hoffman, founder of LinkedIn, Greylock general partner, and Wrapp board member, added:

Wrapp has demonstrated real success with big retailers and momentum with consumers in the past 12 months. Wrapp’s friend-to-friend marketing platform is unique and seriously valuable to both merchants and consumers. Mobile will transform the shopping experience and will be key to customer engagement. Wrapp offers the best way to create branded word-of-mouth with a measureable increase in sales.

Readers: Have you ever sent or received gift cards via Wrapp?