Banking giant Citi has used its investment arm to take a strategic stake in Plastic Jungle, an online exchange for gift cards. Terms of the deal were not disclosed.
Founded in 2006, California-based Plastic Jungle provides an online market for people to sell, buy, exchange and donate gift cards. Users can sell unwanted cards for up to 92% of the value as well as buy them for up to 35% off.
The firm claims that there is up to $41 billion in unredeemed gift cards "trapped" in the US economy and it is helping to unlock this, facilitating the exchange of hundreds of thousands of cards worth 10s of millions of dollars last year.
Bruce Bower, CEO, Plastic Jungle, says: "Our interests line up with many of Citi's interests, and this funding gives us an excellent opportunity to accelerate our growth and continued innovation."
Chris Kay, head of ventures, Citi Ventures, adds: "Plastic Jungle has established itself as a leader in the payments exchange space. Their team is focused on providing a flexible and efficient consumer experience, increasing consumer choice and driving new value from existing currencies. We are happy to help them expand and explore new paths for payments."