Gift Apps That Keep on Giving

An Israeli startup is moving into the Facebook gifting space with the new app, Bday.

Image: Bday/Facebook

Now that retailers have carved out their own real estate on Facebook, merchants—and a number of startups—are looking at ways to make money from their presence.

The latest company to do so is Bday, a fully integrated Facebook application launched today by an Israeli startup that also announced $2 million in Series A funding from Tel-Ad Electronics Ltd., a leading technology company in Israel. The financing will be used to further expand Bday’s technology and product portfolio.

The app recommends gift cards for friends based on recipients’ Facebook likes, and the “sentiment” attached to those likes, meaning it tries to find out whether the friend gives the company a thumbs up or down, avoiding the error associated with just using algorithms, the company said.

Bday says that it will allow users to purchase gift cards for physical products such as clothes and accessories and that it will also offer virtual goods, such as online content and social games.

It will compete in a space that Swedish startup Wrapp has also moved into, with plans to expand to the United States and the United Kingdom this quarter. Other rivals include Giftiki and Coachgifter.