Disrupting the floriculture and gifting industry, The Barcelona-based startup Colvin has raised €6 million in an internal round led by Eurazeo. Eurazeo, the French fund that was the lead investor in the round that the company closed in 2021 and valued at €45 million. The round was also joined by its current investors, and its founders Sergi Bastardas and Andrés Cester, as well as a dozen additional shareholders.
According to Colvin, the capital boost is in addition to the €10 million that was raised the previous year. This downturn has caused a substantial valuation fall of between 40% and 50%.
After this most recent investment, Colvin’s founders have declared that they will step down to allow a new BOD to steer the business in the direction of profitability and “give Colvin a good cash position for new challenges,” according to Sergi Bastardas, founder of the online flower and plant marketplace.
The business claims that it made a strategic shift at the end of last year to concentrate on B2C sales and achieve steady and sustained development. Sergi Bastardas and Andrés Cester, the company’s two founders, will step down as part of this approach, and a new CEO will be recruited to address profitability.
The two founders have stated that they “remain committed to Colvin’s success” and “will continue to be involved as shareholders and advisors, contributing all of our experience and expertise.”
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Spanish media sites note that, according to several sources, the founders themselves chose to look for a new CEO rather than the funds. They decided to focus on direct sales to end customers to be profitable after giving up on their business-to-business segment because of problems. The founders stress the significance of long-term sustainable and profitable growth and intend to stay on the board until the business stabilizes.
The two co-founders shared the duties of the company’s chief executive officer and served on the board together with other foreign investors like P101, Eurazeo, and Milano Investments Partners. Currently, P101 (16.4%), Milano (12.6%), Samaipata (11%), and Idinvest (10.9%) have the most shares among the significant stakeholders.
The 2016-founded startup will concentrate on enhancing its product offerings, marketing, and logistics as it strives to become a sector leader in Spain, Italy, France, and Portugal. It has raised €83.7 million in eight fundraising rounds since its foundation. Colvin bought Monsieur Marguerite, a French start-up that specialized in the online sale of plants and flowers, at the beginning of 2022. The Catalan business now has access to the French market as a result of that purchase. The startup is disrupting the floriculture and gifting industry.
The company bought local wholesaler Bloovery in Italy. While attempting to balance its direct sales to consumers with intermediary services for businesses, the company’s development into the wholesale sector has presented obstacles.
These changes have left Colvin’s leadership in doubt, and the incoming CEO’s tactics will determine the company’s future performance and direction.
