To understand this, you have to understand the potential of this business model, according to one of the founders.
"The whole premise underneath all these products - the web, all the integrations we do, apps we power, the messaging services we enhance - it's all a search experience. And what we deliver in that search experience is a result, and our result is something that ticks off an interesting Venn diagram of information, search result, content, entertainment and communication," Adam Leibsohn, chief operating officer at Giphy, told CNBC in an interview last week.
"So we have a search query and a search result. And we are the biggest search engine inside of messengers that anyone has ever built. And so we are a big search engine, you can look at other search engines about how money gets made."
Leibsohn did not explicitly compare the business to Google - the U.S. search giant - but his comments did hint at what potential revenue streams could be. Like Google, Giphy could monetize via sponsored GIFs, instead of sponsored search results. For example, if you search for a GIF about burgers, a McDonald's GIF could appear.
Another key part of the business is how Giphy integrates with a number of messaging apps. Currently, advertisers do not have access to Slack for example, but potentially could do through GIFs.
To do this, Giphy has "special partnerships" with TV networks, film studios and other content producers in order for it to be able to make GIFs around their characters or films. It can partner with live events in order to allow them to make GIFs on-the-go.
"We have done some very special partnerships and it has allowed us to create really strong relationships with these companies. It helps them get their content in more and more places, places where you can't even buy ads," Leibsohn said.
Giphy is not booking ads or working to monetize the platform yet, but Leibsohn explains that all the content - such as that from movie studios or sports leagues - is in essence branded content.
"Whether we turn on ads or not, and when we do and if we do, and how we do it, the market is already there because everyone is already consuming branded content day in, day out," the co-founder said.
But Leibsohn warned not to think of Giphy as just a search company as it's also an entertainment and content business, allowing it to be a "new search paradigm".