Merchant Innovation

BloomThat On-Demand Flower Delivery Sprouts $5.5M Investment

The online flower delivery business is blooming — thanks to major investors who’ve seen the value in the massively growing market that hasn’t gone out of style.

The same is true for the online-only florist BloomThat, which recently raised $5.5 million, The Wall Street Journal reported, noting that the funding was led by Forerunner Ventures. It also received backing from seed investors Sherpa Ventures, Rothenberg Ventures and First Round Capital and Vaizra Investments.

The on-demand element of the business has been key to its growth, says its co-founder Matthew Schwab, who admits that he’s bad at planning when it comes to sending things like flowers. Luckily for Schwab and BloomThat’s customer base, so are many other people, which has made its same-day or next-day delivery in California a popular option. And that’s in a market that also has online florists like BloomNation, TheBouqs, and of course companies like 1-800-Flowers.

BloomThat’s niche is that it’s not only offering around six items for sale at once, The Journal notes, which focuses on seasonal and more unique plant options. That approach, the company believes, is to help customers eliminate the need to sift through an overwhelming amount of choices, taking away the “paradox of choice,” Managing Director of Forerunner Kristen Green told The Journal.

Last October, its competitor BloomNation saw a similar investment as it raised an additional $5.5 million from its previous $1.7 million raised. The floral segment of online has seen a healthy amount of investment lately.

“BloomNation’s new funding means that four major flower-industry startups have raised about $35 million, led by the nearly $18 million behind H.Bloom, according to data from CB Insights,” the Los Angeles Times reported at the time. “Fellow Los Angeles startup The Bouqs Co. has raised $7.85 million. They’re tackling an industry worth $7 billion to $10 billion that’s been rocked recently by the recession and unfortunate weather.”

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New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

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