Singapore online gift card startup bags $845k in seed funding

Singapore-based gift card company Giftano closed a S$1.15 million (US$845,000) seed funding round from a group of angel investors to expand its business.

Photo credit: Giftano

The startup, founded in 2014, operates an online gift card platform that serves both business-to-consumer and business-to-business markets. It offers gift vouchers from more than 100 food and beverage, lifestyle, and beauty brands, according to a statement.

It also provides users with an array of gifting options from various merchants in Singapore, such as yoga sessions at Freedom Yoga, a meal at Michelin-star restaurant Burnt Ends, and gift certificates for Mothercare and Cathay Cineplexes, among others.

Giftano plans to use the new funds to expand its product offerings, further improve its platform, and drive growth in its B2C business. It now seeks to be “the largest premium online marketplace for gifts” after finding success in B2B services in its first couple of years, Giftano founder and CEO Jesper Gustafsson said.

The company also looks to take advantage of the rapid growth of ecommerce in Southeast Asia, said Ivar Liden, director of business development at Giftano.

According to the latest e-Conomy SEA report by Google, Temasek, and Bain & Company, ecommerce is the region’s biggest and fastest-growing sector. It is currently valued at US$38 billion, leaping from just US$5 billion in 2015. By 2025, the industry is expected to be worth about US$150 billion.

Currency converted from Singapore dollar to US dollar: US$1 = S$1.36.