Why Facebook Acquired Social Gifting Startup, E-Commerce Mobile App Karma?
Facebook Inc. (FB) has acquired 1-year-old mobile e-commerce start-up Karma, allows users to buy gifts from its catalogue from their mobile phones, for an undisclosed sum. The app will retain its functions after the acquisition, according to a blog post from Karma’s founders. All 16 Karma employees will be joining Facebook.
“We’re thrilled to announce that Karma has been acquired by Facebook,” said co-founders Lee Linden and Ben Lewis.
“By combining the incredible passion of our community with Facebook’s platform we can delight users in new and meaningful ways. As we say … only good things will follow.
“Simply put, together we can celebrate life’s important moments in ways we could not before. “
Social gifting startup Karma doesn’t have name recognition as Instagram— Social gifting… may be the next big thing!!!
If you remember, Wrapp raised additional $5 million from Greylock Partners and Atomico following the $5.5 million its secured in November. Karma, too, has completed a venture round with Sequoia Capital, Kleiner Perkins Caulfield & Byers, Felicis Ventures and the CrunchFund.
- Karma has developed technology that lets mobile users send tailored gifts to each other.
- Karma’s chief executive Lee Linden and co-founder Ben Lewis founded Tapjoy.
- Botyh were product managers at Google (GOOG) and Microsoft (MSFT).
- Lee Linden and Ben Lewis have known each other since they were kids.
- Karma app, which is free to download, also sends virtual greeting cards to the lucky gift recipients.
Karma also had a post on its own blog:
We founded Karma with the goal of adding the sentiment and meaning back into gift giving. That’s what Karma is all about. That’s what the Karma team set out to achieve.
Over the last year, we’ve built a new e-commerce platform from the ground up. We’ve been honored to partner with amazing brands to create a curated catalog of products. We made those products instantly giftable in a brand new way. And we harnessed the power of Facebook’s social network to ensure you never miss a chance to show someone you care. The phenomenal response and feedback we’ve heard from customers has more than exceeded our expectations. And we’re just getting started — today we take social gifting to the next level.
We’re thrilled to announce that Karma has been acquired by Facebook. The service that Karma provides will continue to operate in full force. By combining the incredible passion of our community with Facebook’s platform we can delight users in new and meaningful ways. As we say … only good things will follow.
Simply put, together we can celebrate life’s important moments in ways we could not before. A word of heartfelt thanks to our partners, customers, and our incredible team for helping us share Karma with so many people.
Karma Co-founders Lee & Ben
DON’T MISS: Hit List
- Top Most Powerful Women in Social Media 2013
- Do you think Snapchat will be the next big thing like Instagram and Pinterest?
- Is it a good idea that Instagram is joining its data to Facebook’s?
- Do you think Cory Booker and Eric Schmidt, #Waywire, Social Video Startup, will reach critical mass as a news discovery tool?
- Is Facebook Considering On Incorporating Hashtags Functionality?
- Ask Facebook, how to make money from ads on mobile devices?
- How a marketing genius like Randi Zuckerberg was entangled in a privacy mess?
- Has Facebook started charging its users to send messages to high profile users and celebrities?
- The top 50 hottest companies to work for in 2013
- How Facebook is a step closer to replacing old-fashioned cellular voice and texting plans?
- How Facebook users end up sharing more personal details with third-party apps and advertisers?
- Incredibly simple and useful: Facebook Adds Weather Info
Arizona-based financial adviser who builds and manages client portfolios using a mix of individual stocks and ETFs. She has helped identify and develop several trading strategies in numerous commodities markets for her clientele.