Karma is a social, mobile gifting platform founded by Lee Linden and Ben Lewis that debuted a mobile app for iOS and Android to simplify gift giving. The app connects via Facebook and uses a semantic analysis engine to surface occasions (birthdays, engagements, new jobs, birth announcements, condolences, etc.) from users’ feeds. Users pick gifts from a catalog sourced from 50+ product companies (examples in the article include Magnolia Cupcakes, 23andMe, Jawbone, Kate Spade, Netflix and Spotify), attach animated cards and choose delivery via text, Facebook post, or email. Recipients open an HTML5 web interface, can enter a shipping address, exchange the gift, donate its value to charity, and send a thank-you note. Karma does not charge the giver until the recipient accepts and the gift ships, and the company also supports scheduled deliveries. In closed beta the service had sent several thousand gifts; the team is about 20 people and Linden says not requiring immediate payment has increased conversion rates.

Total raised

$5M

Funding rounds

1

Latest round

Equity

Latest activity

Feb 2012