Snappy Expands Its Corporate Gifting Capabilities with Covver Acquisition

The practice of corporate gifting has become a widely recognized strategy to strengthen customer and employee appreciation, fostering better brand loyalty with relatively modest investments. This growing trend has led to a significant expansion of the corporate gifting market. In this competitive landscape, New York-based Snappy, which has raised over $125 million to date, has announced the acquisition of Covver, a corporate merchandise gifting platform. While the financial terms of the deal were not disclosed, it has been reported that the agreement involved a combination of cash and equity.

Snappy Expands Its Corporate Gifting Capabilities with Covver Acquisition
Hani Goldstein, Co-Founder and CEO of Snappy

Covver, headquartered in Tel Aviv, Israel, had previously raised $7 million in funding from TLV Partners. The company specializes in swag-based corporate gifts and offers points-based recognition solutions for employees, integrating automated personalization into its services. For instance, a recipient could receive merchandise customized with their job title without requiring any additional graphic design input—a feature that sets Covver apart in the market.

In an interview Hani Goldstein, Co-Founder and CEO of Snappy, emphasized that Covver’s focus on swag and company store solutions would seamlessly complement Snappy’s mission to enhance corporate gifting experiences. Goldstein explained that Covver’s technology would be integrated into Snappy’s platform as a “swag channel,” enhancing the company’s ability to deliver innovative and personalized gifting solutions. “What Covver built was an amazing experience for swag that’s based on AI and does it extremely well and innovatively,” Goldstein noted. “We felt like this solution can take all the personalization magic and bring it into the combined world of how we do gifting better, to become the leading gifting platform worldwide.”

Goldstein highlighted the enormous potential of the corporate gifting industry, estimating its size at approximately $260 billion globally, with $50 billion attributed to gift cards in the United States alone. However, she pointed out that traditional gift cards often fail to create a meaningful impact, as they feel transactional. She remarked, “It’s like ‘Hey, Mike, here’s 100 bucks!’ But I wanted to make you feel delighted. So what we want to do is make gifting easy, but still keep the magic and personalization.”

Covver’s CEO, Roee Hemed, expressed enthusiasm for the acquisition, stating, “By joining forces with Snappy, we’re unlocking new possibilities for our customers, including expanded product solutions and the ability to leverage Snappy’s trusted gifting platform.”

Founded in 2016, Snappy initially launched as a consumer-focused app before transitioning into the corporate gifting sector. It remained bootstrapped for several years before securing investment from notable firms such as Notable Capital, Hearst Ventures, Qumra, and 83 North. The company boasts an impressive client list, including 47% of Fortune 100 companies, with names such as Microsoft, Amazon, and Comcast.

Despite its success, Snappy faces stiff competition in the corporate gifting space. Rivals like Sendoso have raised $152.7 million, while Postal secured $46 million, and Dublin-based &Open garnered $26 million in 2022. These developments highlight the increasing competitiveness within the industry.

By acquiring Covver, Snappy aims to solidify its position as a leader in the corporate gifting market, offering a broader range of personalized and innovative gifting solutions to meet the diverse needs of modern businesses.