Giftcart Ecommerce Pvt Ltd has raised $1 million (~Rs 5.3 Crore) in funding as seed capital from TekCorp, reports VCCircle. Their website, Giftcart.com, has also been launched in private beta.According to the report, the funds will be used to develop the portal platform, implement business/customer processes and build a supply chain. The company also aims to raise more funds in next six months.
The Delhi-based startup was founded in 2012 by Shaloo Reddi, Managing Director and Kristina Hermanns, Director & GM for customer experience. The gifting portal offers gifts for Men, Senior Men, Women, Senior Women, Teen Boys, Teen girls, Boy, Girl and Babies, and has odd sub-sections: in boys it has sections for boys who are into sports, the brats, the discovery kids, and the creative ones. The gifts can be further filtered according to the occasion and price. The site also offers services like birthday and anniversary alarm where it reminds users on birthdays and anniversaries of their friends and family. Users can also create wishlists on the site, but it’s unclear whether the wishlists are public or integrated with Facebook to share it with the user’s network.
Giftcart claims to have tied up with 60 local and international brands. Since the site is in private beta and we haven’t received our invite yet, we were not able to test these features. The portal also helps users with gift ideas according to personality.
The site states that it accepts payments from regular payment methods such as net banking, credit/debit card, and also offers Cash On Delivery for people who are interested in delivering the gift personally. However, COD is not available on expensive gifts such as precious stones. A conflicting fact we found was that, on one page the site mentions that it accepts American Express card but on the other page it clearly states that it does not accept American Express cards. All the gifts purchased are gift wrapped for free, however, users need to pay extra for customized gift wraps.
Giftcart is currently running a Facebook contest – Play & Win to understand gifting trends in India. The website will go live once the contest is over.
Is There A Need For A Gifting Portal?
While current eCommerce portals allow gifting, they haven’t quite thought this through – users have to add the billing and shipping address, and the mobile number of both person giving the gift, and receiving. In case of hard to find locations, there are high chances that the surprise gift will no longer remain a surprise. However, if current eCommerce portals could implement a gifting feature in their portal, there’s no questioning why would one gift from a specialised gifting portal instead of using their shopping portals which they are comfortable using and have begun to trust. That is, the business model can be easily implemented on other eCommerce portals. Once that happens, all current eCommerce portals could be a potential competition to the site.