Crowdfunding Australia

Mr Roses

Expression of Interest

One of Australia's leading direct-to-consumer retailers of roses, flowers and gifts.

  • Type: Retail

One of Australia's fastest growing direct-to-consumer retailers of roses, flowers and gifts.

Mr Roses

One of Australia's leading direct-to-consumer retailers of roses, flowers and gifts.

    Company Overview

    Mr Roses operates as an online direct-to-consumer (D2C) retailer of roses, other flowers and accompanying gifts (e.g. champagne, chocolates, candles, teddy bears). The company has a clear focus on affordable quality, with distinctive packaging for same or next day delivery in Australian capital cities and regional markets.

    The company is positioned in the masstige floral gifting market – high quality at an affordable price – filling the gap between lower-priced flower suppliers and hyper-localised high-end florists. Products are typically 10-20% cheaper than competitors offering similar products and quality.

    In only a few years since launching, Mr Roses has already carved out a significant share of the market with a revenue of $5.4m achieved in FY22 and a customer base of 35,000. 25,000 of those customers have come in the last 10 months!

    Having established a strong platform, Mr Roses is now looking to turbo-charge growth across Australia.

    Investment Highlights

    1. Strong Traction and Growth

      Mr Roses has seen exceptional growth since launch, with FY22 revenue up 350%. Over that same period, average order value has grown 32%, with 25,000 new customers added. The company is close to breakeven with profitability forecast to be achieved in FY24. Average order value is also up over 100% since 2020 and sits at $160. In the same time, cost per acquisition has decreased from $90 to $65.

    2. Founded and led by a renowned industry veteran, who has scaled and exited businesses before

      James Stevens is a highly-regarded entrepreneur in the Australian floral industry and the broader business community. James built Roses Only from the ground up into Australia’s best known flower-gifting company, and led it to a successful exit in 2013. Non-executive director, Paul Nicolaou, is a well respected business leader with decades of experience leading commercial and not-for-profit entities. He is currently the Executive Director of Business Sydney and was a Non-Executive Director of Roses Only before its sale.

    3. Built on exceptional customer experience

      Mr Roses has built a reputation for exceptional quality and customer service. With over 35,000 customers to date, the company has received thousands of 5-star reviews and prides itself on continually exceeding customer expectations. This is a key recipe to its customer retention strategy and increasing repeat purchase rates.

    4. A large addressable market

      The Australian flower gifting market is worth almost $1b. Online flower retailing represents c.30% of this (c.$320m in revenue) and has grown at an average of 10.6% p.a. since 2017. Mr Roses, with the exceptional pedigree of its team, strong brand, and exceptional growth is well positioned to flourish in its segment.

    5. Strong M&A activity in the sector

      There has been significant M&A and Fundraising activity in the floral gifting space globally. Recent acquisitions of Freddie's Flowers and LVLY are indicative of a high level of investor interest in the space with a clear path to exit for the founders and investors.

    6. Multiple growth opportunities

      With already well established branding and operations in Sydney, Mr Roses is poised to expand into new growing markets. This includes scaling operations in major cities such as Melbourne and Brisbane, and expanding reach into regional areas. These markets represent exciting new growth prospects, and successfully establishing operations in these relatively nascent markets would consolidate Mr Roses’ position as one of Australia’s leading online flower retailers.

    Why Equity Crowdfunding?

    The flower business is one of relationships and personal connections. In times of happiness and grief, joy and challenges, flowers communicate to the recipient that they are appreciated, loved, and cared for. The Mr Roses team feel privileged to be there to help people express that love, care, and grief, and it’s why our community of stakeholders are so important to us.

    We are very early on the Mr Roses journey, with tremendous opportunities ahead to grow the brand across Australia. Funds raised will be used to drive brand awareness and customer acquisition, provide greater geographical coverage across cities and regional areas and bring in key personnel across finance, operations, governance and marketing.

    We would love for all our stakeholders - customers, suppliers, partners- to come along for the journey with us and share in our future growth and success as shareholders!