Greylock Partners has just invested $5 million Swedish-based social gifting service Wrapp, and Greylock’s Reid Hoffman — the cofounder of LinkedIn — will join the board.The round totals $10 million and was also led by Atomico, which is run by Niklas Zennström, co-founder of Skype and Kazaa. He is also on the board.
The service just launched in mid-November on cofounder Hjalmar Winbladh’s birthday (yes, he got a gift of $400 as a present), and it’s taken the country by storm. In December, 250,000 gift cards were sent through Wrapp, and the service has been growing consistently by 30% every WEEK.
Wimbladh has founded several other successful companies, including mobile email provider SendIt, which he sold to Microsoft for $125 million in 1999.
He told us he’s making online gift-giving as easy as writing on someone’s Facebook wall.
Once you sign in and connect through Facebook, you see when your friend’s birthdays are. It takes you to a page with gift options, including free gifts. Once a gift is selected, you can share it on your friend’s wall (or send it through SMS or email).
Redeeming the gift is just as easy. Recipients can collect their gifts using a barcode sent his smartphone via the Wrapp app.
It won’t be the only gifting service in town. Giftly is a San Francisco-based startup that launched around the same time as Wrapp, and uses Yelp’s open API to let people buy gift cards that work on any business that is listed on Yelp.
The U.S. launch is expected at the end of the first quarter, with the sales team based near New York and the tech team in the Bay Area. Then the Wrapp team plans to continue rolling out to Europe, starting with the United Kingdom.