GiftCard Rescue Shark Tank Net Worth 2023
Gift Card Rescue was founded by Kwame Kuadey in 2011 as an online marketplace for people to sell their gift cards.The company valuation was $500,000 during the pitch.
After appearing on Shark Tank in 2012, the company gained a lot of publicity and its revenue quickly jumped from $250,000 to $2 million.
Gift Card Rescue went on to become one of the fastest growing startups in the US and made the Inc. 5000 List in 2013 and stayed on it for four consecutive years.
Kwame Kuadey rejected Kevin O’Leary and Robert Herjavec’s offer of $200,000 for a 50% equity stake in the business, instead opting to partner with Amazon.com.
The company went on to make $6 million in 2021 and over $10 million in 2013. However, despite its success, Gift Card Rescue was struggling to keep up with demand and customer complaints were piling up.
In 2016, a lender froze their bank account and the company was shut down. As of 2023, Gift Card Rescue is no longer active.
What is GiftCard Rescue? Who is the founder of GiftCard Rescue?
GiftCard Rescue was an American online marketplace where users could buy, sell, and exchange gift cards. The website offered a list of gift card brands and their corresponding serial numbers, similar to a blog.
This feature enabled users to easily sell their unused gift cards, which is a common problem as around 10% of all gift cards go unused each year.
The founder of GiftCard Rescue, Kwame Kuadey, was inspired to create the business while pursuing his MBA at John Hopkins University.
He noticed that his friend had several unused gift cards and realized that this was a widespread issue, with nearly $8 billion in gift cards going unclaimed annually.
Kuadey’s solution was to purchase unused gift cards from clients at 65-70% of their face value and then resell them for a 10% discount, allowing both buyers and sellers to benefit.
The business model was successful, and GiftCard Rescue quickly outgrew Kuadey’s personal finances, leading to the need for investment.
Despite running the business from his home with the help of his wife, Kuadey’s sales exceeded $120,000 per year. However, he could not expand without additional funding.
Nonetheless, his research showed which gift cards were in demand, and Amazon.com expressed interest in collaborating with his business. GiftCard Rescue was a valuable resource for those seeking to cash in their gift cards or purchase them at a discount.
GiftCard Rescue Shark Tank Pitch
Kwame Kuadey traveled a significant distance to appear on episode 104 of Shark Tank and present his business, GiftCard Rescue. He was hoping to find a Shark who could assist him in scaling and marketing his business.
Kuadey pitched his GiftCard Rescue business on the show, seeking $150,000 for a 30% stake, which valued the company at $500,000.
He explained that without the capital injection, he would be unable to continue running his business. Robert Herjavec asked him some probing questions about the value of the company.
Kuadey responded assertively, stating that the value of his business is dependent on financial investment, a potential collaboration with Amazon, and his own management abilities.
However, the offer was ultimately rejected by Daymond John, Barbara Corcoran, and Mark Cuban. Kevin O’Leary expressed interest but countered with a different offer: $150,000 for a 50% stake in the company.
Kuadey tried to negotiate, offering 40% equity shares, but Kevin O’Leary refused to budge from his original offer. Robert Herjavec then stepped in and offered to join Kevin O’Leary for an additional $50,000 in exchange for a 50% stake in the company. Kuadey accepted this offer and left the pitch with a deal.
However, Kuadey later declined the offer from Robert and Kevin. With an Amazon contract on the table and the exposure he gained from appearing on the show, he believed that giving up 50% of his company was an unnecessary sacrifice.
Kuadey’s hard work and determination drove his business forward, and GiftCard Rescue went on to gross $6 million in 2012 and over $10 million in 2013, making it one of the most successful businesses to appear on Shark Tank.
Kuadey’s self-confidence, perseverance, and level-headed business acumen have continued to propel him forward. When asked about the profitability of his company, he stated that he had generated $15 million in sales in 2015.
However, the company closed in July 2016 due to a lender obtaining a judgment for debt default and blocking the company’s bank account, leading to the shutdown.
The Better Business Bureau in Baltimore received 300 complaints at the time. However, as of July 2021, it seems that the issues have been resolved.
Competitors of GiftCard Rescue
GiftCard Rescue had numerous competitors in its marketplace. These are; Plastic Jungle, Cardpool, and CardCash.
Net Worth of GiftCard Rescue
The company valuation was $500,000 during the pitch. In 2016 the company went out of the business and the company net worth is unknown.
GiftCard Rescue FAQs
What is GiftCard Rescue?
GiftCard Rescue was a gift card resell firm. On their website, you can find current and expired gift cards for sale. In some cases, the cards are completely pulled off of their site. The company accepts cards from various brands including: Wal-Mart, Visa, Amazon.com, and JetBlue Airways.
Who is the founder?
The founder of GiftCard Rescue is Kwame Kuadey.
How much did Kuadey get on Shark Tank?
Yes, Kwame Kuadey had the deal with Robert Herjavec and Kevin O’Leary. He received $200,000 for 50% equity of the firm.
Is GiftCard Rescue still in business?
GiftCard Rescue is not in business anymore. It is unknown if Kwame Kuadey still owns the company.
Where was GiftCard Rescue located?
GiftCard Rescue is located in Baltimore, Maryland.
Where did the idea come from?
The idea for GiftCard Rescue came from friends’ unused gift cards. He was having trouble selling his unused cards and knew that other people had this same problem.
How much did GiftCard Resort done in revenue?
GiftCard Rescue done about $14 million in 2015, $10 million in 2013 last count. They have been operating since 2009. In 2012 they hit $6 million in revenue.
How did GiftCard Rescue work?
The business model was straightforward: acquire cards from clients seeking to cash them in for 65-70 percent of their face value, and then resell them for 90% of their face value.
How much did GiftCard Rescue expand?
GiftCard Rescue has been operating since 2009. They have expanded their business to Europe and Australia. They are planning to expand in other countries. How much did it cost GiftCard Rescue to expand? It cost them $500 per transaction including shipping, handling & labor hour costs to ship the cards overseas.
How did GiftCard Rescue get paid?
GiftCard Rescue got paid through the cash back and chargebacks.
What methods of payment accepted by GiftCard Rescue?
GiftCard Rescue accepted the following payment method: PayPal, check, money order, wire transfer and gift cards & gift certificates.
What were the terms for GiftCard Rescue?
The GiftCard Rescue terms were like any other reseller of gift cards. One can contact them with their credit card information to have them approved and they can submit their unused or unwanted gift cards that they buy to get cash back.
What was the return policy of GiftCard Rescue?
The return policy was simple; where merchandise was purchased and then returned within 10 days of the purchase date, it can be returned for a refund. After the 10 days, there is no option to return the item.
What were GiftCard Rescue pros?
The business was located in an area that was rife with high unemployment and poverty rates. There are many people who are struggling financially and could not necessarily afford to buy gifts for loved ones on special occasions for which gift cards were intended.
What is the net worth of Kwame Kuadey?
The net worth of Kwame Kuadey is estimated at $500,000
