Elliot Bohm’s CardCash.com receives $6M in funding from Guggenheim
CardCash.com, a secure secondary gift card exchange, today announced that it has secured $6 million in growth financing from Guggenheim Partners.
CardCash said it will use the funding to continue to enhance its popular exchange on which consumers can buy, sell, and trade the estimated $30 billion of unused gift cards in homes right now.
“We are excited to form this strategic partnership with Guggenheim Partners as this will help us realize our strategy and vision,” said Elliot Bohm, an Orthodox Jew and CEO/co-founder of CardCash. “With Guggenheim’s investment, we can expand our brand and service to consumers across America.”
Doug Atkin, who heads Guggenheim’s venture and growth investing business, added, “CardCash fits perfectly into our strategy of investing in innovative financial exchanges. The Company has a proven track record and a first-rate management team. We look forward to our partnership and also to helping them continue to build out their exciting business.”
Annual gift card sales exceed $100 billion annually in the United States. As that number continues to grow, nearly 10% of those cards go unspent every year. To help access that locked-up capital, CardCash provides a simple and secure online exchange that allows consumers to convert these unused cards into cash.
CardCash’s approach also benefits the more than 300 national retailers available on the CardCash exchange. CardCash can drive immediate revenue and profit back to retailers by matching their gift cards with consumers who shop at their stores.
“In today’s economy, our service offers a win-win situation for buyers and sellers of gift cards,” said COO and co-founder Marc Ackerman. “Recipients of gift cards can sell their cards on our exchange and get cash, which can then be used to use to pay their rent or mortgage, or to buy basic necessities. At the same time buyers on our exchange can save on average 10-15% off at their favorite merchants by purchasing these gift cards at a discount.”
Since its inception, CardCash has not only been profitable, but has also more than doubled its growth each year. The company has been recognized by Forbes and twice by Inc magazines as one of the most promising and fastest growing companies in the U.S.