Shark Tank episode 104 aired Kwame Kuadey’s Gift Card Rescue, founded in 1989. The young man spent his early years in a rural village without running water or electricity in West Africa.
His memory takes him back to studying under the light of a kerosene lantern, dreaming of a better future. When he moved abroad to pursue higher education, the opportunity presented itself.
The inspiration came while studying at John Hopkins University, where he received an MBA. One of his friends mentioned that he had numerous unused gift cards.
Kuadey recognized that his friend’s issue was a common one. Each year, almost $8 billion in gift cards go unclaimed.
He came up with a solution to this dilemma, and Gift Card Rescue was founded upon some sweat equity, credit cards, and loans.
What Is Gift Card Rescue?
Gift Card Rescue is an online marketplace for the sale and exchange of gift cards in the United States. It offers users an opportunity to sell their gift cards.
Its website functions similarly to a blog; it contains a list of gift card brands and their associated serial numbers, which can be used to sell the gift card.
There is 10 percent of all gift cards that remain unused each year. You probably already own a few of them. You might not be able to use the card in-store, or perhaps you weren’t able to find what you were looking for.
Gift Card Rescue can help you convert your unused gift cards to cash. You can enter the information for your gift card on their website, and they will tell you how much they will pay you.
The payment is usually 65-70 percent of the card’s value, and it is deposited into your PayPal account within 24 hours.
As a result, Gift Card Rescue resells refurbished and unused gift cards at a discount, often 10%, which makes it a great place to purchase gift cards in the first place.
The founder of Gift Card Rescue approached Shark Tank seeking $150k in exchange for a 30% stake in the company.
|Company Name||Gift Card Rescue|
|Product||Online Marketplace To Sell And Exchange Gift Cards|
|Investment Asking For||$150,000 For 30% equity for 30% equity in Gift Card Rescue|
|Final Deal||$150,000 For 50% equity for 30% equity in Gift Card Rescue|
|Shark||Kevin O’Leary And Robert Herjavec|
|Episode||Season 1 Episode 4|
|Business Status||Out Of Business|
Who Is The Founder Of Gift Card Rescue?
Kwame Kuadey is the founder of Gift Card Rescue.
Gift Card Rescue Before Shark Tank,
Ghanaian Kwame Kuadey arrived in the United States to establish an online gift card exchange company.
Kuadey and an old friend discussed how he had many gift cards he wanted to sell for cash, and the concept was born.
This unexpected, amicable conversation led to the creation of Gift Card Rescue. Kuadey started this firm to assist customers in selling and purchasing gift cards.
Gift card holders who wish to sell them for cash online can do so at a discount, while those looking to save money at their favorite stores can get more than they paid for.
Despite Kuadey’s brilliant idea, the gift card exchange didn’t prove to be as successful as he had hoped in America. Unfortunately for Kuadey, his business ran into significant challenges during its early stages.
During this adversity, he decided to audition for ABC’s Shark Tank appearance.
How Was The Shark Tank Pitch Of Gift Card Rescue?
Kuadey is confronted with a challenge that many start-up businesses face. The Gift Card Rescue company has outgrown its finances. He operates out of his home with the help of his wife.
The company’s sales exceed $120,000 every year, but its earnings could be far higher if it had access to capital.
He follows a simple business model: he acquires cards from clients looking to cash them in for 65 to 70 percent of their face value, then resells them at 90 percent of their face value.
He has conducted detailed research to determine which cards would sell and which would not, and he has heard from Amazon.com that they are interested in partnering with him. Is the Shark going to bite?
Kuadey requests the Shark Tank. He is seeking a $150,000 investment for 30% of Gift Card Rescue. Without capital infusion, he will be unable to continue his venture.
The business valuation is the focus of Robert Herjavec’s questioning. Kuadey responds forcefully, maintaining that his company’s success depends on capital investment, potential cooperation with Amazon, and management skills.
Mark Cuban, Barbara Corcoran, and Daymond John reject the deal. When Kevin O’Leary is tempted, he counters with an entirely different offer.
Kuadey will get $150,000, but he wants 50% of the company.
Kuadey counters with his offer of 40%. O’Leary remains adamant in his offer.
Robert Herjavec speaks forward and offers to join O’Leary for $50,000 in exchange for 50% of the firm. Kuadey accepts the offer.
What Happened To Gift Card Rescue After Shark Tank?
Kwame Kuadey effectively revived Gift Card Rescue following his appearance on the show.
He established an online corporation that has since sold nearly $40 million in gift cards with the needed cash.
Gift Card Rescue has been featured by The Wall Street Journal, Forbes, The New York Times, and other well-known outlets because of its increased profits.
The company featured on Shark Tank is one of the most successful due to its dramatic surge in sales and popularity.
If you’re interested in earning money from unused gift cards or in purchasing a reduced card for yourself or a gift for someone else, you can visit GiftCardRescue.com.
They provide cheap gift cards for over 450 prominent companies on their website. A 100% money-back guarantee backs all card and money transfer transactions.
Additionally, they have a customer care team that works tirelessly to meet each customer’s demands.
Gift Card Rescue Shark Tank Update
Kuadey ultimately declined Robert and Kevin’s offer. He thought that giving up a 50% stake in his company would be an unnecessary sacrifice given the Amazon contract and the notoriety he gained from appearing on the show.
Kuadey’s work ethic and perseverance propelled him forward. Gift Card Rescue grossed $6 million in 2012 and over $10 million in 2013, making it one of the most profitable firms to ever participate on Shark Tank.
Kuadey’s self-assurance, tenacity, and level-headed commercial acumen are propelling him forward. When asked about his company’s profitability, he said;
It was last year, and we anticipate it will be again this year. Profitability is not my primary focus at the moment. The goal of my investment is to expand the business, so that metric means nothing to me.”
The sales of his company in 2015 amounted to $15 million. The company was closed in July 2016. Reports say that the company’s bank account was blocked after a lender obtained a judgment for loan default.
There were 300 complaints to the Baltimore Better Business Bureau at the time. The problems seem to have been resolved as of July 2021.