Facebook may have one of the most staggeringly- large user bases of any particular app or service, but one of the enduring problems is finding a way to convert casual users into customers. British startup SwiftGift aims to give it a try with a service that allows Facebook users to send gifts to their contacts.
One of the interesting features of this particular service is that it allows customers to send gifts, even if they do not know the recipient’s address. For a family member or close friend, you might just ask and they will provide it. However, many people likely have a number of contacts on Facebook with whom they are not as close and it might be a bit awkward to ask for their address. Thus, SwiftGift is taking aim at this problem by providing a platform through which Facebook users can order a gift and have it sent to someone. And they go through the trouble of wrapping it and including a card, so it does not just come in a boring, brown box. The contact then receives a notification about the gift and inputs their address if they wish to receive it.
The company tells me that the service is free to use (outside of the money that senders shell out for the gift) and that they generate revenue through charging a commission from merchant partners on transactions completed.
These guys have not been around long, having launched in beta on Monday. And the choice of launch date is no coincidence, as the company tells me that they wanted to go live as shoppers complete late Christmas purchases. This week is especially important for the company as, not only did they launch, but they are also on the verge of completing a second seed round. Details on the investors are not available, but the company would say that they are backed by a total of 400,000 pounds (at a valuation of 8 million pounds).
Based in Britain, these guys are currently focused on the domestic market, but they have their eye on the global market and are looking to expand to the United States and continental Europe next year (and possibly to further markets after that).