Colvin, the Spanish startup dedicated to the floriculture sector, raised 6 million euros in the form of loans convertible into shares. The money was contributed by its current investors, led by Eurazeo, who also led the 2021 financing round for a total of 45 million euros, together with Samaipata, P101, Milano Investments Partners and IDInvest.
Colvin’s founders, Sergi Bastards and Andrew Cester, They affirm that this capital increase is added to the 10 million euros obtained in 2021 and “It gives the company a good cash position for new challenges.”
A new CEO and the commitment to B2C
Since late 2021, Colvin has embarked on a strategic change with which it seeks to move from a B2B marketing model to a a direct-to-consumer (B2C) business, For this reason, they have closed the division of companies in charge of contacting wholesalers with florists, in addition to closing their business in the German market. As a consequence of these closures, the firm applied to an ERE to dismiss 40% of its workforce in Spain (75 workers), belonging to the Barcelona headquarters and now the local team will only have 120 people.
In the words of the Colvin founders themselves, “We made the decision because they were the two least profitable activities. In this way, we are now focused on the Spanish, Portuguese, Italian and French markets and we are dedicated solely to the delivery of flowers at home”.
On the other hand, they assure that “Colvin has reached a state of maturity in which the strategy and management style will be different”, which leads its founders to step aside and find a new CEO that it can achieve the long-awaited profitability and reach a net profit by 2025. «We remain committed to the success of Colvin and we will continue to be involved as shareholders and directorscontributing all our experience and knowledge”, explained the founders.
Colvin’s business model
Born at the end of 2016, Colvin has revolutionized the flower and plant industry in the online sector thanks to a disruptive business model and creating the first network without intermediaries in the sector. The team is in charge of buying directly from the producers and delivering to the final consumers, thus managing to reduce the complex supply chain of a perishable product with complicated transportation. In addition, they carefully select the flowers, plants, and growers they work with to ensure the best quality, design, and exceptional service.
Despite having an effective value offer and having been a candidate for a unicorn, according to the latest data from the Mercantile Registry, in 2021 Colvin billed 10.4 million euros and the losses were 14.5 million. For this year, the firm expects to obtain 15 million euros of income.
Currently, it has operations centers in Barcelona, Tuscany and Berlin. In addition, it operates in Spain, Portugal, Italy and France, through its partner Monsieur Marguerite.
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