Swedish social gift firm set to use capital for UK and US launch.
Wrapp received the $5.5 million in a first round of funding from Nordic investor Creandum and venture capital firm Atomico, which was founded by Skype co-founder Niklas Zennström who will join Wrapp's board.
The US gift card market is currently worth $100 billion. Wrapp will now look to grow beyond Sweden and capitalise on the blossoming market by launching its social service in both America and the UK.
The Wrapp mobile apps utilise the birthday information from the user's Facebook friends to monitor birthdays and send digital gift cards from a variety of brands.
Once a card has been sent to a friend, mutual friends can chip in with extra contributions and the present will stay wrapped for the aging boy or girl until the birthday arrives.
The company was co-founded by Spotify CTO Andreas Ehn and Hjalmar Winbladh, CEO of the VoIP company Rebtel.
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Winbladh, said: "Sweden validated our belief that people want to make giving gifts of real value among friends an everyday event, and don’t want to limit it to just birthdays, holidays or other big occasions.
"Everyone likes to be recognised and celebrated. Attractive brands are providing the free gift cards. All you have to do is choose one and send it to a friend. No strings attached."
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