Gift card platform Nift has collected $16m in its Series A funding round from Spark Capital, Foundry Group and Accomplice.
US-based Nift is a gift card platform that helps 2,000 merchants offer customers deals, creating a healthy local business environment. Founded in 2014, the platform provides small businesses with a machine learning platform that helps match neighbourhood gifts to the right customer.
The solution works by a merchant giving a loyal customer a Nift, a physical or digital card, which can then be redeemed on the Nift website. During redemption the customer will answer a handful of questions which the algorithm will then use to offer two free gifts from other local merchants. A user picks the one they want, helping to boost other local businesses exposure.
Following success in Boston, Providence and Washington D.C., the company hopes this new capital will support further national expansion, with plans to enter five new markets. The company is also hoping to grow its team by 400 per cent over the next 12 months.
Foundry Group founding partner Seth Levine said, “Nift is providing a way for merchants to deliver the experiences customers want, while fostering a healthy ecosystem. The success of the platform illustrates the impact it’s already having in strengthening these businesses and revitalizing communities.
“Customers are spending over three-times the value of their gifts, which makes the system more powerful than any other advertising medium available, including Facebook and Google.”
Earlier in the year, fellow gift card platform Blackhawk Network Holdings was acquired by Silver Lake and P2 Capital Partners in a $3.5bn deal.
Spark Capital recently contributed to the $19.1m ICO of payments network Colu, which also picked up commitments from venture firms including IDB Group and Aleph VC.
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