Gift cards are a popular gift, but 10% of all gift cards sold actually go unused. That’s why Kwame Kaudey started a company to solve this problem. He buys unwanted gift cards from gift recipients and resells them for a profit. Will his company earn him a deal on
Shark Tank Gift Card Rescue Update
- Entrepreneurs: Kwame Kaudey
- Business: Gift card reseller
- Ask: $150,000 for 30% equity
- Result: $200,000 for 50% equity
- Sharks: Kevin O’Leary and Robert Herjavec
Kwame presented his company Gift Card Rescue to the sharks and explained how it works. Gift card owners go to his website and enter their gift card information.
Kwame then purchases the gift card for about 65%-75% below its value. Customers can then shop online to find a gift card that they would want, and pay 10% below the gift card’s value.
Gift Card Rescue secures a gross margin of around 25% per gift card. At the time of filming, Kwame had earned $55,000 and was on track to bring in $120,000 in sales that calendar year. Robert Herjavec was impressed with Kwame’s margins and business plan.
Daymond John and Barbara Corcoran both told Kwame that this wasn’t the type of business they wanted to invest in, so they both went out.
Kevin Harrington felt that the company was too early for an investment, so he too went out.
Kevin O’Leary offered $150,000 for 50% equity. Robert Herjavec teamed up with Kevin and offered $200,000 for 50% equity, and Kwame accepted. What happened next for his company? Keep reading our Gift Card Rescue update to find out!
We have sad news to share in our Gift Card Rescue update. Though the company’s popularity surged after appearing on
This will be our final Gift Card Rescue update.
Would you like to learn about the other companies featured in Season 1 Episode 4? Follow the links below for our other company updates from the episode.
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Jeremy is a regular contributor at Shark Tank recap. He has a ton of passion for the show and enjoys researching information about what all the companies are up to now. His favorite Shark Tank companies are The Cookie Dough Cafe and Kronos Golf!