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Fintech & e-commerce

BloomNation Raises $11M Series B, Moves Under Umbrella Of Promenade

Floral marketplace received $11 million in a round of Series B funding led by . It also introduced its parent company, , and is applying its e-commerce technology to two new verticals: local pizzerias via and liquor stores via .

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, co-founder and CEO of Santa Monica-based BloomNation, started the company back in 2010 after seeing his aunt, a florist, have a hard time shifting her business to meet online consumer demand.

鈥淐ustomers were going elsewhere to get flowers for themselves, but were using online for gifting flowers,鈥 Shoraka told Crunchbase News. 鈥淭his is one of the oldest industries to go online, and many florists work with marketplaces that find them customers, but charge a commission to receive orders and fulfill them.鈥

Instead, BloomNation enables florists to control how they work by taking their own photos, creating their own designs and pricing for their market, he added.

Flowers are big business. Overall, the, and of that, the online flower sector is expected to be a $5.1 billion market this year in the United States, according to.

Meanwhile, BloomNation joins in receiving funding this week. Tech-enabled wedding and event flower startup Poppy, headquartered in Washington, D.C., announced $1.65 million in seed funding led by.

Investors pumped $109 million of known venture-backed capital into via 21 deals in the past five years, according to Crunchbase data.

One of the top deals during this period was in to., a Los Angeles-based cut-to-order online flower delivery service. The company has raised a total of $88.1 million since being founded in 2012.

Including the new funding, BloomNation raised just over $20 million, Shoraka said. That includes a in 2014, according to Crunchbase data.

Shoraka is using the new funding as a driver to 鈥渄ouble down and push forward,鈥 as well as provide tools and services for small businesses that don鈥檛 often have the resources to establish an online business, such as point-of-sale, inventory management and delivery

鈥淪mall business owners are good at their craft, but don鈥檛 have the resources, time or money to figure out social media and are often getting scammed by other companies trying to sell them on services,鈥 he said. 鈥淲e decided to rebrand under Promenade and group together the vertical software to go after e-commerce.鈥

, president of B. Riley VC, said in an interview that the company was new at venture investing and that the investment in BloomNation/Promenade was one of three. He said he admired the management team and its approach.

鈥淲hat was lacking was someone providing the technology for small businesses,鈥 Sims said. 鈥淧romenade is operating in a unique space where it is providing a tailored approach that goes a long way for these customers. Ultimately, it is providing technology to small businesses so they can go directly to consumers, which is the best possible situation.鈥

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