GiftCard Rescue Shark Tank | What Happened to GiftCard Rescue after Shark Tank?
What is GiftCard Rescue?
GiftCard Rescue was a United States-based online marketplace for the sale and exchange of gift cards. It enables users to sell their gift cards.
Its website is comparable to a blog in that it offers a list of gift card brands and their accompanying serial numbers that may be used to sell the gift card.
Each year, 10% of all gift cards go unused. You’re likely already familiar with a couple of them. You may be unable to use the card in-store, or you may have been unable to locate the item you were searching for.
GiftCard Rescue can assist you in cashing out your unused gift cards. You may enter the details for your gift card on their website to find out how much they will pay you.
Who is the founder of GiftCard Rescue?
GiftCard Rescue was founded by Kwame Kuadey. He spent his early days in a rural West African community that lacked running water and electricity.
He recalls studying studies by the light of a kerosene lamp, dreaming of a better life. His opportunity presented itself when he moved to the United States to pursue college.
While pursuing his MBA at John Hopkins University, he discovered inspiration in an unexpected area. A buddy remarked that he had numerous unused gift cards.
Kuadey recognized that his friend’s issue was a common one. Each year, almost $8 billion in gift cards go unclaimed.
He devised a solution to this dilemma, and GiftCard Rescue was formed with some sweat equity and investments from personal savings, credit cards, and loans.
The money was typically 65-70 percent of the card’s value and is paid within 24 hours into your PayPal account.
As a result, GiftCard Rescue resells refurbished and unopened gift cards at a discount, frequently 10%, making it an excellent source for gift cards in the first place.
Kuadey was confronted with a challenge that many start-up businesses face. Gift Card Rescue has outgrown his personal finances.
He has been functioning out of his house, with the assistance of his wife. While his sales exceed $120,000 each year, his earnings might climb far higher if he had the cash to expand. His business model is straightforward: acquire cards from clients looking to cash them in for 65-70 percent of their face value, then resale them for 90% of their face value.
He’s done thorough research to determine which cards would sell and which would not, and he’s received confirmation from Amazon.com that they are interested in collaborating with his business.
What Happened to GiftCard Rescue at Shark Tank pitch?
Kwame Kuadey traveled a great distance to present GiftCard Rescue on Shark Tank episode 104. Kwame was searching for a Shark to assist him with scaling and marketing.
Kuadey entered the Shark Tank seeking $150,000 for a 30% stake in his GiftCard Rescue business, which valued at $500,000. Without the infusion of capital, he will be unable to continue his venture. Robert Herjavec poses probing questions regarding the business’s worth.
Kuadey replies forcefully, arguing that the worth of his firm is dependent on financial investment, a prospective cooperation with Amazon, and his own managerial abilities.
The deal was rejected by Daymond John, Barbara Corcoran, and Mark Cuban. Kevin O’Leary was interested, but counters with an offer. He will offer Kuadey the $150,000, but in exchange for 50% stake in the firm.
Kuadey counters with his own offer of 40% equity shares. Kevin O’Leary remains steadfast in his offer.
Robert Herjavec intervenes and offers to join Kevin O’Leary for an extra $50,000 in exchange for 50% stake in the firm. Kuadey accepts the offer and exited the pitch with a deal.
What Happened to GiftCard Rescue after Shark Tank?
Kuadey ultimately declined Robert and Kevin’s offer. With the Amazon contract on the table and the notoriety he earned as a result of his appearance on the show, he thought that giving up a 50% stake in his firm was an unnecessary sacrifice.
Kuadey’s work ethic and perseverance propelled him forward. GiftCard Rescue grossed $6 million in 2012 and over $10 million in 2013, making it one of the most profitable firms to ever participate on Shark Tank.
Kuadey’s self-assurance, tenacity, and level-headed commercial acumen are propelling him ahead. When asked about his company’s profitability, he stated that he had $15 million in sales in 2015.
The company was closed in July 2016. According to reports, a lender obtained a judgment for debt default and blocked the company’s bank account, forcing the shutdown.
The Baltimore Better Business Bureau received 300 complaints at the time. As of July 2021, it appears as though the problems have been handled.
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