UrbanStems is announcing that it has raised $12 million in Series B funding.
CEO Seth Goldman told me the startup has already been using the money to expand nationally. He explained that UrbanStems now has two delivery models — there are bike couriers who deliver plants and flowers within two hours in New York City and Washington, D.C. (where the company is headquartered), and then there’s a third-party shipping partner who offers next-day delivery to anywhere else in the United States.
The company started out with bike couriers, and Goldman said it’s not abandoning that strategy: “We will find areas where there’s enough demand to warrant jumping in, boots on the ground.”
At the same time, he said next-day shipping has allowed the company “grow a lot faster in the short term.” (Regardless of method, UrbanStems does not charge an extra delivery fee.)
Recent initiatives include a partnership with Vogue, with bouquets created by Vogue editors. In addition, the company has been expanding beyond flowers (where prices start at $35) and plants ($50) by offering curated gift boxes ($55). It sounds like Goldman has plans to do more in this area, too.
“The gifting market is far bigger than