The Rising Wave of Corporate Gifting: Snappy’s Strategic Acquisition of Covver
In today’s business world, the power of corporate gifting is undeniable. Companies are realizing that a thoughtful gift can not only enhance their brand’s image but also foster stronger relationships with both customers and employees. As a result, the corporate gifting market has witnessed significant growth. An impressive player in this arena, New York-based Snappy, has decided to expand its horizons by acquiring Covver, a platform specializing in corporate merchandise.
- Snappy’s Growth: Raised over $125 million to date
- Covver’s Background: Backed by TLV Partners with $7 million in funding
- Merger Details: Includes cash and shares (terms undisclosed)
“What Covver built was an amazing experience for swag that’s based on AI and does it extremely well and innovatively,” said Hani Goldstein, Co-Founder and CEO of Snappy.
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Covver is known for its innovative swag-style merchandise solutions, offering personalized products that automatically incorporate details like job titles—no graphic design needed. This expertise aligns perfectly with Snappy’s vision to enhance the corporate gifting experience. By integrating Covver into its platform as a “swag channel,” Snappy aims to offer a comprehensive gifting solution that combines magic and personalization.
The potential of corporate gifting is enormous. In the U.S. alone, gift cards account for about $50 billion, while the broader corporate gifting industry is valued at approximately $260 billion. Yet, gift cards often feel transactional, lacking the delight and personal touch that thoughtful gifts can bring. Snappy wants to change this narrative by making gifting not just easy but also magical.
“By joining forces with Snappy, we’re unlocking new possibilities for our customers,” said Roee Hemed, CEO of Covver, “including expanded product solutions and the ability to leverage Snappy’s trusted gifting platform.”
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Since its launch on TechCrunch in 2016 as a consumer app, Snappy has grown considerably, bootstrapping until it secured investments from notable firms like Notable Capital and Hearst Ventures. It now boasts a client base that includes over 47% of Fortune 100 companies such as Microsoft, Amazon, and Comcast. However, it’s not without competition; Sendoso has raised $152.7 million, Postal $46 million, and Dublin-based &Open $26 million.
In conclusion, Snappy’s acquisition of Covver signals a strategic move to dominate the corporate gifting landscape by blending innovation with personalized experiences. The future of gifting looks promising with this dynamic partnership leading the way.
