Snappy Acquires Covver: Expanding Gifting Solutions

Corporate Gifting Market Sees Consolidation: Snappy Acquires Covver

The practice of providing corporate gifts to both customers and employees is now widely recognized as a cost-effective method for enhancing brand appreciation. Consequently, this sector has experienced substantial growth. Snappy, a New York-based company that has secured over $125 million in funding, is now in the process of acquiring Covver, a platform specializing in corporate merchandise gifting.

Covver's Specialization and Funding

The financial details of the acquisition remain confidential, but TechCrunch reports the transaction involved a combination of cash and equity. Covver, previously supported by TLV Partners of Tel Aviv, Israel, had raised $7 million in funding.

The company focuses on providing companies with branded merchandise, often referred to as "swag," and offers employee recognition programs based on a points system. A key feature is its automated personalization capabilities. For example, a user could send branded items to an editor-at-large, and the system would automatically incorporate that title into the design without requiring manual graphic design work.

Synergies and Platform Integration

Hani Goldstein, co-founder and CEO of Snappy, explained in an interview with TechCrunch that Covver’s expertise in swag and company store solutions will complement Snappy’s existing gifting capabilities. The two platforms will be integrated, with Covver functioning as the dedicated “swag channel” within the Snappy platform.

“Covver developed an exceptional experience for swag, leveraging AI to deliver innovative results,” Goldstein stated. “Their specialization in swag allows us to integrate their personalization technology into our broader gifting solutions, positioning us as a global leader in the gifting market.”

Market Size and the Shift from Gift Cards

Goldstein highlighted the significant size of the gifting market, noting that gift card sales alone total approximately $50 billion annually in the U.S. The overall corporate gifting market is estimated at $260 billion. However, she observed that many individuals struggle to select appropriate gifts, leading them to opt for gift cards.

“While gift cards offer choice, they can feel impersonal – simply handing someone a set amount of money,” she explained. “Our goal is to simplify gifting while preserving the element of delight and personalization.”

Covver CEO's Perspective

Roee Hemed, CEO of Covver, stated: “Joining forces with Snappy will unlock new opportunities for our customers, including access to a wider range of products and the benefits of Snappy’s established gifting platform.”

Snappy's Growth and Client Base

Snappy initially launched as a consumer application in 2016 and operated on a bootstrapped basis before securing investment from firms including Notable Capital, Hearst Ventures, Qumra, 83 North, and various venture capital firms.

The company reports serving over 47% of Fortune 100 companies, including prominent clients such as Microsoft, Amazon, and Comcast.

Competitive Landscape

Despite its success, Snappy faces competition in the corporate gifting space. Sendoso has raised $152.7 million, Postal has secured $46 million, and &Open, a Dublin-based platform, raised $26 million in 2022.