Local flower delivery startup LVLY has been acquired for $35 million by Southeast Asian tech company Limitless Technology, amid growth in online flower delivery over the past two years.
The deal would net Melbourne-based founders Hannah Spilva and Verity Tuck a $20 million windfall.
Based in Kuala Lumpur, Limitless Technology launches, develops and acquires profitable electronics brands across Asia-Pacific, with a focus on gifts, confectionery, healthcare and fashion.
Following the news, LVLY confirmed that Spilva will serve on the board of directors of Limitless Technology and that Tuck will leave the company.
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Launching the company in 2015, the founders of LVLY sought to create an affordable flower delivery business that would allow people to let friends and family know more frequently that they were thinking of them with flowers.
LVLY’s revenue grew by 629.9% in the three years to 2021, earning it fourth place in SmartCompany’s Smart50 Awards in 2021.
As of financial year 2021, the brand’s annual revenue had reached $13.9 million, with 162 employees working from its locations in Melbourne, Sydney, Adelaide and across Australia.
Spilva and Tuck both worked in advertising before starting LVLY. The pair have already said SmartCompany their experience in branding helped them see a glaring gap in the online flower and gift market.
“No company or brand currently meets this need in the market,” Spilva said. SmartCompany in 2021.
“What started as a desire to spread joy has blossomed into a rapidly growing e-commerce business that has disrupted the Australian flower category and set new standards for same-day delivery,” said the team.
They attributed the success and rapid growth of LVLY to the simplicity and personalized touches of the platform.
Customers can select the size of ‘flowerpot’ they wish to send, along with the message, but leave the selection of fresh, local flowers for same-day delivery to the company’s expert team.
In a market traditionally dominated by larger players, the brand’s point of difference is its irreverent message that goes against the traditional flower delivery experience. Messages available include “Hey there hot stuff”, and gift options range from mini cocktail sets and hot sauce to candles and even a designer vibrator from The Smile Makers.
The brand is also passionate about strengthening the local flower market with a commitment to working with Australian farmers and suppliers. Around 40% of flowers sold in Australia are imported from overseas, the company claims.
A thriving industry
LVLY currently operates same day deliveries to Melbourne, Sydney and Adelaide, and same day deliveries to other Australian locations.
While flower sales overall have been dampened by the continued lockdowns that have forced many Australians to stay home for the past two years, flower delivery has blossomed.
The growing adoption of online shopping has boosted industry revenue for online flower retailers.
Despite supply chain challenges and rising consumer costs, industry revenues are expected to grow 10.6% in the five years to 2021-22, to $383.8 million. dollars.
LVLY was advised by Deloitte Corporate Finance and Hitch Advisory, and Limitless Technology Group was advised by Bell Potter Securities and Baker McKenzie, according to the Australian Financial Review.
Venture capital debt was provided by Silicon Valley-based Partners For Growth.
Limitless Technology, which is considering an initial public offering, said in a statement that the company sees significant opportunities to expand the company’s footprint beyond Australia.
“We expect LVLY to enjoy great success beyond Australia. At the same time, Limitless brands benefit from LVLY’s synergistic operational footprint with market-leading same-day delivery across the country. Australia,” said Maximilian Lotz, Founder and Managing Director of Limitless Technology.
“From our first meeting, it was clear that the LVLY brand fit perfectly into the Limitless portfolio,” Lotz said.
SmartCompany has contacted LVLY for more details.