On Me raises $6M to shake up the gift card industry
On Me, a digital gift card startup founded by former Google employees, is aiming to redefine the gift card industry with its mobile-first gifting platform that lets users purchase digital gift cards categorized by interests rather than being restricted to specific retailers.
The company on Thursday said it had raised $6 million in a seed funding round, which it will use to expand its gift categories to include things like horseback riding lessons, wine tastings, and theme park trips.
On Me touts its flexibility. So if you have a friend who is passionate about tennis, you can send them a digital card that lets them shop for outfits and gear from popular brands like Wilson, On, Prince, and more.
The platform offers gift cards across 72 categories that range from running and reading to camping, gardening, gaming and concerts.
You can also attach video messages, photos and GIFs to gift cards, which is a nice touch as it lets you add a layer of personalization. You can use On Me via its website as well as iOS and Android apps.
The startup’s CEO and co-founder Darragh Meaney pointed out the environmental issues with the traditional gift card industry, which rely heavily on plastic.
The International Card Manufacturers Association (ICMA) reports that approximately 30 billion plastic cards are manufactured globally each year, and that over 70% of gift cards are discarded within six months, resulting in an estimated 53 million tons of plastic waste.
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“It is an environmentally wasteful practice that feels totally disconnected from how we live today,” Meaney said.
On Me’s digital cards also integrate with Apple Pay and Google Wallet.
With the global gift card market projected to reach $2.3 trillion by 2030, On Me believes it is well-positioned for growth. Since its launch, the company says it has facilitated over $2.5 million in gifts for more than 26,000 users, and has grown 50% every month.
The seed round was led by NFX, with participation from Lerer Hippeau and Focal.
The funding comes a year after the company launched its platform and raised $1.7 million in a pre-seed round.
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