BloomThat, an on-demand flower startup, has sold itself to flower giant FTD, Axios reports. FTD, which offers same-day delivery flowers for a variety of occasions, reportedly paid a small amount of money for the startup.
Prior to this reported acquisition, BloomThat had raised $7.5 million from investors like Rothenberg Ventures, Forerunner Ventures, Sherpa Capital and others, with the most recent round in April 2015.
In February 2016, BloomThat launched its flower delivery service nationwide. But instead of offering delivery within a couple of hours, BloomThat guaranteed next-day delivery, which effectively moved the startup into the territory of 1-800-FLOWERS and FTD.
Unlike many other on-demand companies, BloomThat relies on three key services for its deliveries: FedEx, UPS and Deliv. Before tapping FedEx, UPS and Deliv to handle the actual deliveries, BloomThat managed their own deliveries and owned the logistics from end to end, BloomThat co-founder Matt Schwab told me a couple of years ago. By changing the logistics around delivery and implementing delivery fees, BloomThat’s burn rate dropped from $560,000 to $15,000 a month.
I've reached out to both BloomThat and FTD. In the meantime, check out this interview with Schwab.
- This article originally appeared on TechCrunch.