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.
Kwame Kuadey, a man from Ghana, traveled to the United States to start a company that would help people sell their gift cards to others for cash.
Kwame Kuadey was inspired to start Gift Card Rescue when he talked to a friend about having many gift cards he wanted to sell for cash.
After a pleasant telephone conversation, the idea for Gift Card Rescue was born.
Kuadey wanted to start a business to help people sell and buy gift cards online.
People who wish to sell gift cards for cash can put them on the internet for a much cheaper price.
People who choose to save money by shopping at their favorite stores can also obtain a little more for their money.
Kuadey originally believed that he would do well to help individuals start their businesses in America.
Unfortunately for him, his business went through many challenges and was not successful as he had planned.
He decided to make a guest appearance on Shark Tank on ABC during a difficult time.
Would a Shark be interested in investing in Gift Card Rescue?
What Is Gift Card Rescue?
Gift Card Rescue is an online marketplace for selling and exchanging 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 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 in Gift Card Rescue|
|Final Deal||$200,000 For 50% 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 wasn’t as successful as he had hoped in America. Unfortunately for Kuadey, his business faced significant challenges during its early stages.
During this adversity, he audited for ABC’s Shark Tank appearance.
How Was The Shark Tank Pitch Of Gift Card Rescue?
Kwame Kuadey appeared on Shark Tank requesting an investment of $150,000 in exchange for a 30% stake in Gift Card Rescue.
Kuadey appears on Shark Tank to raise money from the sharks. In his opening scene, he expresses a desire for a person to invest in his company.
When he finally appears in front of the sharks, he is an extremely confident man who is confident that his business will succeed.
Kuadey opens the show by saying he is asking for $150,000 to buy a 30% stake in his Gift Card Rescue.
It is explained that more than ten percent of all gift cards purchased are unused by the person giving the gift.
In 2008, about $80 billion worth of gift cards were sold, and an entire $8 billion market remained untapped.
After hearing such an overwhelming number, the sharks instantly began to interest him.
Then he explains how his company will purchase gift cards for as much as 65% to 70% of the actual value and then sell the card at a discount of 10%.
Robert Herjavec asks Kuadey to show a few more numbers after he finishes his speech.
Gift Card Rescue only made $55,000 in sales last month but expected to make about 25% of the $120,000 they expected to make.
Shark, Kevin O’Leary quickly points out a problem he saw in the business.
He then asked the sharks what they would do if they could not buy $100,000 worth of gift cards and only sold $30k worth of them. They need someone to step up and take the money they would have lost.
Kuadey explained how he decided which gift cards to buy and which ones to reject based on what people were most likely to buy.
Herjavec praises him for having very good margins and for having researched and prepared thoroughly to answer their questions.
After the questions and answers portion of the show is over, Herjavec decides to return to the asking price that Kuadey negotiated with the sharks earlier in the episode.
If one of the sharks wanted to buy into a company like this, then the company would be worth more than $500,000.
When asked why Gift Card Rescue was worth that much, he replied that there was a lot of room for growth and better sales.
He also stated that Amazon was willing to partner with him. All the investors are stunned and suddenly realize they are worth a lot of money.
Daymond John shook his head when he told Kuay that he liked what Kuay was doing, but he did not like what he was doing. He would not invest in the company.
Barbara Corcoran followed suit, but O’Leary stopped short by offering $150,000 to buy half of the company.
Kuadey was unhappy with the offer, so he proposed selling 40% of his company for $150,000.
Kuadey was reluctant to make the price adjustments that would have allowed Herjavec to partner with O’Leary and offer $200,000 for a 50% stake in the company.
That was a great deal for him, and he could not refuse it. Therefore, he accepts it.
Kwame Kuadey leaves the Shark Tank stage with an investment from Robert Herjavec in his Gift Card Rescue.
Final Deal: Robert Herjavec agreed to invest $200,000 for a 50% stake in Gift Card Rescue.
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.
Gift Card Rescue 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, purchasing a reduced card for yourself, or a gift for someone else, you can visit GiftCardRescue.com.
Gift Card Rescue provides cheap gift cards for over 450 prominent companies on their website. A 100% money-back guarantee backs all card and money transfer transactions.
Additionally, Gift Card Rescue has 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 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 participate in Shark Tank.
The sales of Gift Card Rescue 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 of Gift Card Rescue to the Baltimore Better Business Bureau at the time. The problems of Gift Card Rescue seem to have been resolved as of July 2021.
What Is the Net Worth of Gift Card Rescue?
The valuation of Gift Card Rescue was $500,000 when it appeared on Shark Tank. The net worth of Gift Card Rescue is unknown as of 2022 since the company went out of business in 2016.