Crowdfunding Australia

Mr Roses

Offer LiveDeal ClosedCloses:
  • Type: Retail
  • Total Round Size (min): AUD$500,000
  • Total Round Size (max): AUD$3,000,000
  • Price per share: AUD$1.2

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

Offer Live

Mr Roses

An online direct-to-consumer (D2C) retailer of roses, other flowers and accompanying gifts.

  • Fees Paid by Issuer
    : 6% of funds raise
  • Cooling-Off Rights
    : 5 working days
  • Minimum Parcel Size
    : $252

Offer Overview

Investor Rewards

Entry Squad

For investments between: $500 - $999

  • 5% discount website online
Bronze Squad

For investments between: $1,000 - $1,999

  • 8% discount website online
Silver Squad

For investments between: $2,000 - $4,999

  • 10% discount website online
Gold Squad

For investments between: $5,000 - $9,999

  • 12.5% discount website online
Diamond Squad

For investments above: $10,000

  • 15% discount website online

What is Mr Roses?

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 run rate of $5.4m in FY22 and a customer base of over 35,000.

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

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

    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. Premium Partnerships

    Mr Roses has built a reputation for high quality, premium products, as well as excellent customer service. Partnerships with premium organisations are key to upholding brand reputation as the business grows.

  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.

Core Business Model

Mr Roses is an online, direct-to-consumer flower gifting business, focused on providing affordable quality and exceptional customer service. The business is based in Sydney and provides same and next day delivery across capital cities and major regional areas.

Online traffic is driven to the website through organic search, social media, collaborations, PR, partnerships and paid media.

While business activity enjoys seasonal peaks around Valentine’s Day and Mother’s Day, the principal gifting occasions of birthdays and wedding anniversaries provide steady year-round revenue.


In Sydney, all flowers are purchased directly through growers, wholesalers, local markets and importers to ensure the highest quality. The flowers are shipped to the company warehouse in Rosebery, where they are stored in special purpose cold rooms awaiting arrangement and packaging.

In other regions (including Melbourne, Brisbane, Perth and Newcastle), Mr Roses has carefully selected and trained 3rd party fulfilment partners whose responsibility it is to source the flowers. Mr Roses’ partners then utilise the packaging provided by Mr Roses to arrange and pack the flowers for delivery. Mr Roses plan is to increase its network of 3rd party partners to enable Mr Roses even greater coverage across regional parts of Australia for next-day delivery.

Mr Roses also has strong relationships with companies such as Moet & Hennessy to provide champagne, chocolate, teddy bears, candles and various other accessories to be bundled with flowers.


All orders are processed through Mr Roses’ Shopify enterprise platform. Order instructions are distributed either to Mr Roses’ company-owned fulfilment centre in Sydney, or to one of its 4 partner fulfilment centres. All associated cards, shipping slips etc are printed with the order at the relevant fulfilment centre.


The fulfilment partner model was established to ensure the same or next day delivery of fully branded, identically presented flowers across Australia. The model enables Mr Roses to build brand presence and fulfilment capability across Australia on a completely variable cost base. Mr Roses partners with existing flower businesses to provide a distribution function on a fee for services arrangement, while standardised products and packaging processes allow easy replication in other cities and ensure quality control and consistency of service. The model reduces the capital investment required in the distribution chain, leveraging the team & focus on brand and technology to grow and scale.


The majority of deliveries in Sydney are outsourced, with Mr Roses holding relationships with several courier companies to reduce risk and increase price tension. In other cities, fulfilment partners are responsible for deliveries.

Growth Strategy

Mr Roses has built a strong foundation in a short period of time, with over 35,000 customers, presence in all capital cities and strong unit economics. The team has plans to reach over $23m in sales by FY24 and deliver consistent profitability. To achieve this, several growth pillars have been identified that will enable the company to scale sustainably.

Expand geographic same-day coverage across Australia

To date the company has been very Sydney centric with 60% of its revenue coming from the greater Sydney area. Although Mr Roses did establish a presence in Brisbane and Melbourne in 2019, the team has more actively focused on Sydney and NSW during the pandemic. Increasing the focus on Brisbane and Melbourne provides a significant opportunity for growth as they are still very nascent and represent large addressable markets similar in size to Sydney.

In addition to a greater focus on these major cities, the team is focused on providing greater coverage to regional centres through increasing its partnerships with 3rd party partner suppliers that can access these regions.

To strengthen its position in Queensland and increase the volume of daily deliveries that can be achieved, Mr Roses will be sourcing a new facility in Brisbane. The third party partner will continue to manage the daily operations for that region out of the new facility.

Build brand awareness and customer acquisition

Mr Roses will continue to invest in above the line marketing, such as TV, radio, print ads and billboards, in order to reach new customers en masse. Increased marketing spend will cement market position and turbo-charge growth of a still young brand. The team’s intention is to reduce the cost per acquisition across digital marketing channels over time, improving the company’s LTV:CAC ratio.

In addition, the team believes that the return to offices is a powerful marketing opportunity for the team. Mr Roses’ differentiated customer packaging experience means that, compared to receiving flowers at home, receiving flowers at the office provides an additional marketing opportunity, since customers are surrounded by co-workers. Implementing marketing strategies to specifically target the return to the office will be a key focus.

Build out management team with key hires

To date the company has been run by James Stevens and a lean team, which has been appropriate for its early stage, leveraging James’ unrivalled experience in the sector. However, the company is now at a critical growth stage and has a tremendous opportunity ahead of it to become a leading Australian D2C brand. In order to realise this potential, funds from this raise will be used to bring in key senior staff to complement James across key areas such as finance, marketing and operations/logistics, as well as non-executive directors.

Continue to improve unit economics and margin, driving towards profitability

Since launch the company has seen steady growth in average order value, which now sits at over $160. In addition, the rate of returning customers over the last two years has consistently been between 20 and 23%. By continuing to bring in new products, new cross-sell opportunities will be delivered, which will increase average order value.

Further, Mr Roses is committed to leveraging its customer satisfaction to build a community around the brand. This equity crowdfunding campaign is part of this strategy. Mr Roses believes that providing increased value to customers will allow it to hold the return customer purchase rate above an industry leading 25%.

The Company is looking to achieve $33m in revenue by FY25 and achieve a 6% net profit.

Marketing Strategy

As a digitally native e-commerce brand, Mr Roses utilises a variety of marketing distribution channels to reach its target audience, educate them on the product, build trust and eventually convert them to loyal, repeat customers.

Key Metrics

- 12.11% of customers who land on the site add to cart

- 62.85% of those initiate a checkout

- 72.70% of those follow through to purchase 

- 5.53% Website conversion rate putting Mr Roses in top 10% of Shopify Stores

Distribution Channels

Email marketing - Mr Roses has an email database of over 35,000 customers. Direct email marketing is used to nurture existing customers through conversion, to upsell and cross sell products and also to retain existing customers and increase repurchase rates. Loyalty programs and exclusive discounts are utilised to increase engagement with existing customers.

Social Media - Mr Roses has over 4,500 Instagram followers and 8,400 Facebook followers. Organic social media content is used to draw attention to Mr Roses’ excellent customer reviews, run promotions and deals, and educate customers with behind the scenes flower care tips. Paid marketing across these platforms is used to find new audiences and to convert them into customers.

SEO/SEM - Allows Mr Roses to stay top of mind and ahead of competitors with branded search campaigns, as well as generic keyword search and shopping campaigns.

Sponsorships - Mr Roses sponsors The Australian Ballet. Beyond giving back to the community, partnering with one of the world's premier ballet organisations positions the brand as a premium offering, increasing exposure to a wealthier audience as well as associating the Mr Roses brand with the level of quality that the ballet entails.

Market Opportunity

Over the past 5 years, the brick-and-mortar flower retailing industry in Australia has faced challenging trading conditions, achieving only 0.9% growth YoY. 3 Contributing to this stagnating performance have been COVID-induced headwinds, such as lockdown measures and border closures, increasing competition from retailers outside of the industry such as supermarkets and grocery stores, and a structural shift towards online-only flower retailers.

Despite these headwinds subsiding as we enter a post-COVID world, the changes brought about by the pandemic look to have left lasting effects on the floral industry, on which Mr Roses is perfectly positioned to capitalise.

Online Flower Shops lead Industry Growth

Even as the brick-and-mortar flower retailing industry in Australia has experienced tailwinds from a number of converging factors, the online flower retailing industry has enjoyed strong growth over the past five years, and is set to continue its strong trajectory. Since 2017, industry revenue growth has averaged 10.6% p.a., far outpacing brick-and-mortar flower retailing, reaching a total of $383.8 million.

One of the main drivers of the strong growth in the online flower industry has been consumers’ increased preference for e-commerce platforms and home delivery options. In 2020, four in five (82%) Australian households made an online purchase, up from 75% in 2019. With the frequency of purchases also increasing, this trend points towards an increase in ‘sustained participation’ in online shopping, even now that restrictions from COVID have been lifted. This transition towards online purchasing options has allowed online industry operators to take market share from brick-and-mortar flower retailers, and has even resulted in traditional local florists migrating their services towards online offerings.

Online flower retailers also benefit from accessibility and convenience, with consumers able to order flowers, bouquets, and accompanying gifts from the comfort of their own home. With the speed of same and next-day delivery options, consumers are no longer forced to go to their nearest local florist in search of a last-minute gift idea. Online-only stores also benefit from lower overheads due to savings on rent costs and lower expenditure on store upkeep, improving margins and helping to keep prices competitive.

For more information please see section 2.8 of the Offer Document.

Key Team Members

Team Member

James Stevens

Managing Director and Co-Founder

James was the Founder and Managing Director of Roses Only. James established Roses Only in 1995 with an ambition to build a strong consumer brand known for quality, importing roses directly from Colombia, Ecuador and Kenya to ensure quality and deal with seasonal shortages in winter, as well as sourcing Australian roses locally.  His initial store was in Sydney’s Chifley Plaza and was followed by other stores in Sydney. Online was set up in 1999.

Roses Only grew to be the best-known floral gifting brand in Australia, and at the end of 2013, James and his father sold Roses Only in Australia and New Zealand to FlowersCorp, which already owned 1300 Flowers and various other floral gifting brands.

Besides vast experience in the flowers and gifting industries, James has a degree in accounting and finance from UNSW.

Team Member

Paul Nicolaou

Non-Executive Director

Paul commenced his current role as Executive Director for Business Sydney in September 2021. Prior to Business Sydney, Paul was Director for the Business Leaders Council, Membership and Events for the Australian Chamber of Commerce and Industry (ACCI) for seven years.

Paul sits on the Board of The Gut Foundation, The Estia Foundation, Australian Marketing Institute and is a Non-Executive Board Member of Group Colleges Australia. In addition, Paul is an ambassador of Start Up Australia and is a Member of the Association of Independent Schools of NSW Institute. Further, Paul is a Non-Executive Director of Dymocks Children’s Charities.

Paul has held several positions with leading commercial not-profit organisations, including Chief Executive Officer of the UNSW Foundation. Paul also worked closely with James as Non-Executive Director of Roses Only before its sale.

Financial Information

For more information please see Section 2.12 of the Offer Document.

Use of Funds

For more information please see Section 3.2 of the Offer Document.

Key Risks

For more information please see Section 2.14.1 in the Offer Document.

Key Person Risk

As an early-stage startup, the Company is led by key personnel such as the founder who are actively involved in the management and operations of the business. Should the company fail to bring in additional staff in key positions, it may struggle to achieve its key business objectives.

Supplier and Third-Party Risk

The Company does not itself produce flowers or gifts, and is reliant on the wholesale market with respect to the supply and/or demand of flowers or gifts. Any significant impact to the market, such as the occurrence of extreme weather events, could impact on the supply of flowers. The Company also relies on third-party partners to provide fulfilment and delivery of orders outside of Sydney. If the cost of such services increases or relationships deteriorate, the Company’s profitability and ability to fulfil client orders will be negatively impacted.

Competition Risk

The flower gifting market is highly competitive. There is a risk from both existing market players and new entrants. Should other companies be better capitalised and have greater access to economies of scale, this may impact the Company's ability to acquire customers.

Brand Risk

The Company has built a reputation for high quality, premium products at an affordable price with exceptional customer service. Should the Company’s brand image decline or be damaged, its ability to grow and scale will be negatively impacted.