per Owler….Tango Card just acquired GiftCertific
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Posted On: 02/13/2019 12:53:30 PM
per Owler….Tango Card just acquired GiftCertificate.com ...undisclosed amount.
GiftCertificate.com was founded in 1997 and revenue was only $11 million with 90 employees. Given that Tango just raised $15 million I assume that the purchase price was less than that. Gross margins can't be all that high especially if you are discounting a gift card by say 20-25% max. The company may split the discount with the card issuer. Net margins would probably be in the low to mid single digit % and huge volume would be required to see economies of scale.
Other competitors include DCR Strategies, Buyatab, and Swift Prepaid Solutions, Cash Star, CardCash, Ifeelgoods, Incentive Solutions, RaiseMarketplace, Wrapp, Giftbit, GiftRocket, Giftly
Buyatab revnues are $15 million for example. One thing that is consistent amongst all these companies is needed for constant equity funding, into the tens of millions of dollars per company.
Initially I thought it was a good idea but it turns out there is a LOT of established competition that has to raise a lot of money to build out I
t infrastructure or buy out it's competitors.
Food for thought.
GiftCertificate.com was founded in 1997 and revenue was only $11 million with 90 employees. Given that Tango just raised $15 million I assume that the purchase price was less than that. Gross margins can't be all that high especially if you are discounting a gift card by say 20-25% max. The company may split the discount with the card issuer. Net margins would probably be in the low to mid single digit % and huge volume would be required to see economies of scale.
Other competitors include DCR Strategies, Buyatab, and Swift Prepaid Solutions, Cash Star, CardCash, Ifeelgoods, Incentive Solutions, RaiseMarketplace, Wrapp, Giftbit, GiftRocket, Giftly
Buyatab revnues are $15 million for example. One thing that is consistent amongst all these companies is needed for constant equity funding, into the tens of millions of dollars per company.
Initially I thought it was a good idea but it turns out there is a LOT of established competition that has to raise a lot of money to build out I
t infrastructure or buy out it's competitors.
Food for thought.
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