The Rise of Corporate Gifting: But Are Companies Seeing the Returns?
Corporate gifting in India has raised real money and attracted regulatory scrutiny. But it has not produced clear proof of business returns.
Between 2015 and 2025, Indian gifting tech startups raised $115.9 million, according to Tracxn’s Gifting Platforms Wrap Report. That is enough capital to have built an entire industry around a habit that once meant a box of dry fruits and a card. Then, just as fast, investor interest has since fallen sharply.
Corporate Gifting Startups in India: Funding Boom and Bust
Funding for Indian gifting startups peaked in 2022 at $63.9 million. By the year 2025 to date, only one Indian startup in this space had raised any capital: Indigifts, with a $57,600 angel round backed by Ritesh Agarwal and Vineeta Singh.
That is more than a slowdown. It is close to a halt in report funding. Some of the decline reflects a wider funding winter across Indian startups. But gifting’s drop has been particularly sharp, and that gap matters. If gifting were the sure-thing growth story the trend pieces describe, capital would keep flowing even in a tighter market. It didn’t.
For any founder deciding how much to spend on gifting, that does not prove that gifts fail to deliver results. The lesson is simple: marketing confidence around gifting is not currently matched by investor confidence.
The Startups behind India’s Gifting Market
Four names account for most of the capital raised: Xoxoday ($30.6 million), Ferns N Petals ($26.1 million), ZoomIn ($21 million), and Printo ($17.7 million).
Xoxoday began in Bengaluru in 2012 as Giftxoxo, founded by Manoj Agarwal and Sumit Khandelwal, with Kushal Agrawal and Abhishek Kumar joining as co-founders. It later rebranded as Xoxoday and was acquired by Giift, a rewards and loyalty firm.
Xoxoday didn’t stay in the hamper business. It became a B2B SaaS company selling rewards and payout infrastructure. Gifting was the entry point, but the business evolved into something broader. That shift from physical gifts to gifting-as-a-service software is the real story in this sector, and it rarely makes it into coverage focused on packaging trends and personalisation.
Does Corporate Gifting Actually Deliver ROI?
This is the question every founder should ask before approving a gifting budget. No verified public data from government, industry bodies, or independent studies currently answers it. If a vendor pitches you a gifting platform on the promise of measurable ROI, ask how they measure it and what evidence supports the claim. The burden of proof is on the vendor, not on an outside study.
What This Means for Founders and SME Owners
Two things about corporate gifting in India are clear right now. Investors funded it heavily, then walked away almost entirely. And the tax rules that do exist are more complex than many vendors suggest. The ₹50,000 line is not just a budget ceiling. It can affect how GST treatment is interpreted.
Neither fact tells you whether gifting is worth your money. But together, they are good reasons to slow down before signing a large gifting contract. Ask your vendor for evidence that its platform improves retention or client relationships. Ask your accountant, in writing, what your GST exposure looks like on both sides of the ₹50,000 line. One of those answers has genuine legal ambiguity built into it. The other side still needs evidence beyond a vendor’s sales pitch.
Frequently Asked Questions
Is corporate gifting tax-free in India?
Corporate gifting is tax-free for up to ₹50,000 per employee per financial year. Beyond that, the excess is treated as a taxable supply under Schedule I of the CGST Act.
Can businesses claim GST input tax credit on corporate gifts?
For gifts within the ₹50,000 exempt bracket, no. Section 17(5)(h) blocks it. For gifts above that threshold, tax practitioners disagree on whether ITC becomes claimable once the gift is treated as a taxable supply. Get a written opinion from a CA rather than assuming either answer.
Does the same GST rule apply to client or partner gifts?
No. Client and partner gifting is treated separately from employee gifting, and the right treatment depends on how the gift is structured.
How much have Indian gifting startups raised?
Indian Gifting startups have raise $115.9 million between 2015 and 2025 year to date, according to Tracxn, versus $1.73 billion globally in the same period.
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