Whamoosh.com, which was launched last week, specialises in fully personalised greeting cards, but plans to venture into personalised mugs and calendars from early next year.
According to the company's founders, the group aims to secure 25% of the online market for personalised cards and gifts within the same four-year timeframe.
The greeting cards, ordered online, are printed at Wirral-based company Wirralco, which is using its HP Indigo digital colour press to produce the cards.
The same company is sending out the cards that can be delivered next day when ordered by 2:15pm. Like Moonpig, the company's prices start from £2.99, plus postage.
Whamoosh is promoting its facial recognition platform, Face-it!, as one of the service's unique selling points. Users can upload a photo, which is then embedded onto one of the hundreds of images on the website.
John Bickley, director and co-founder of the company, said: "We believe Whamoosh has a great opportunity to make a real impact in the online personalised ‘print-to-demand’ greeting cards and gift market, especially with our exciting range of Face-it! and other products."
Bickley, who set up technology business Facetec, co-founded Whamoosh with Alan Oliver, founder of card publisher Kamrok Greetings.
The UK greeting cards industry is currently worth around £1.5bn.
In September, Moonpig revealed that growing demand for digitally-printed personalised greetings cards had helped it more than double its turnover to £20.9m for the year ending 30 April 2009.
Pre-tax profits for the latest period had also more than doubled from £2.5m to £6.7m.