Reachdesk Secures $43M Funding to Grow B2B Gifting Platform
The Rise of B2B Gifting and Reachdesk's $43 Million Funding
Over the past 20 months, corporate gifting has emerged as a significant strategy for fostering business relationships. As in-person interactions have diminished, sending gifts to colleagues and associates has become a more personal method of recognition, relationship building, and maintaining contact beyond standard communication channels like messaging apps, video conferences, or email.
Reachdesk Secures Series B Funding
Reachdesk, a company capitalizing on the growth of the B2B gifting market, has announced a $43 million funding round. This investment reflects the current momentum within the gifting sector, with Reachdesk experiencing a remarkable 600% growth in business over the last year.
Investment Details and Strategic Partnerships
Highland Europe led the Series B financing round, with participation from Highland Capital, HubSpot Ventures, and RLC Ventures. HubSpot serves as a strategic partner, as Reachdesk integrates with various CRM and business tools – including HubSpot’s – to streamline gift campaign management.
A Market Without Seasonal Boundaries
Unlike retail gifting, which peaks around Black Friday and the New Year, corporate gifting isn't constrained by specific seasons. It’s driven by the initiation and continuation of business relationships, offering opportunities throughout the year.
Competition in the B2B Gifting Space
The shift away from in-person meetings has fueled growth in the B2B gifting market, attracting several startups. Sendoso recently secured $100 million in funding, while Alyce raised $30 million in April for a platform utilizing AI to optimize gift selection based on occasion, sender, and recipient. &Open also received $7.2 million to support its scalable B2B gifting platform.
Reachdesk's Origins and Founding Team
Founded in London in 2019 by Alex Olley, Jay Radia, Meelan Radia, and Alex Correia-Santos, Reachdesk welcomed Temy Mancusi-Ungaro as CEO in May of this year. The company’s inception stemmed from firsthand experience with the inefficiencies of B2B gifting processes.
From Marketing Startup to Gifting Solution
The Radia brothers, previously co-founders of GV-backed marketing startup Yieldify, recognized the manual and often disconnected nature of B2B gifting. They envisioned a solution that integrated with existing business software to enhance tracking, management, and strategic planning.
Differentiating Reachdesk in a Crowded Market
Mancusi-Ungaro acknowledges the similarities among gifting businesses, noting the market’s substantial size – estimated at $235 billion annually in the U.S. and U.K. However, he emphasizes Reachdesk’s global operational focus as a key differentiator. This allows for larger, more consolidated campaigns and efficient service to both large and small corporate clients.
Reachdesk's Three-Tiered Gifting Approach
Reachdesk offers three primary gifting options:
- Company Inventory: A curated selection of branded merchandise and items housed in globally distributed warehouses.
- Marketplace: A network of over 50 vendors specializing in personalized corporate gifts.
- Gift Cards: A digital gifting option without physical delivery.
The company plans to expand all three areas in the future.
Expanding Use Cases Beyond Sales and Marketing
While currently focused on sales and marketing applications, Reachdesk is exploring emerging use cases. These include internal employee recognition programs and potential B2B2C gifting scenarios, where businesses send gifts directly to their end customers.
Industry Validation and Future Outlook
Laurence Garrett, partner at Highland Europe, stated, “The Reachdesk team truly understands the pain points faced by companies looking to break through to customers with effective marketing campaigns and has built a single solution that acutely addresses these.” He further expressed confidence in the team’s ability to capitalize on the market’s potential and establish Reachdesk as a leading provider.
