UrbanStems, a flower delivery start-up has announced that it has raised $12 million in Series B funding. CEO Seth Goldman said that the start-up has been using the raised money to expand nationally already. The company now has 2 delivery models under them. One is the bike courier service where the bikers deliver plants & flowers within 2 hours in around their headquarter city Washington D.C. and New York City. The other model is where there’s a 3rd party shipping partner offering next day delivery to all other parts of the United States. UrbanStems does not charge extra delivery free regardless of any method used for delivery.
The start-up utilised only bike couriers when they started out and they do not plan to abandon the main strategy says Goldman. But now they intend to find areas where there is demand to warrant jumping in boots firmly on the ground. He also mentioned that the next day shipping method has allowed the company to now grow faster than before and in short term. Taking example from the success of Flora Queen in international flower delivery to Australia, UrbanStems also expanded its flower delivery business.
UrbanStem is now doing a partnership with Vogue with bouquets that have been created by Vogue editors. The company is now looking forward to expanding beyond flowers and plants by offering curated gift boxes of $55. Goldman said that gifting market is far bigger than the flower market and the company is looking forward to cashing on this highly emotional, vulnerable gifting experience where timing, packaging and every little detail matters.
UrbanStems funding came after leadership changed with Goldman taking over the chief executive role from co-founder Ajay Kori in May of last year. Kori remains involved as chairman of the board.