Fundraising Fox

UrbanStems

Washington, US · Founded 2013 · Delaware corporation · 10 known investors

UrbanStems is an online flower and gift delivery company offering same-day delivery in eight U.S. cities and next-day nationwide.

Also known as UrbanStems

Founders & leadership

UrbanStems was founded in 2013 by Ajay Kori and Jeff Sheely.

AK
Ajay KoriCo-founder
JS
Jeff SheelyCo-founder

Board

AP
Alexander PessalaBoard director

Investors · 10

Also in the syndicate · 3

DF EnterprisesleadExisting investorsSWaN & Legendlead

Reported raises · per SEC filings

Form D private placements

$35.3M disclosed across 5 of 6 rounds · 2015–2024

$19.5MraisedJul 2021 · 23 investors · Other
Rule 506(b)
Officers, directors & promoters on the filing
  • Daniella YacobovskyDirector
  • Ajay KoriDirector
  • Alexander PessalaDirector
  • David StrasserDirector
  • Goldman SethExecutive Officer, Director
Offering amount
$20.1M
Amount sold
$19.5M
Minimum investment
$1
First sale
Apr 2021
Incorporated
Corporation, Delaware
Federal exemptions
06b
Full filing on SEC EDGAR ↗
$6.6MraisedDec 2017 · 24 investors · Other
Rule 506(b)
Officers, directors & promoters on the filing
  • Jeff SheelyExecutive Officer, Director
  • Ajay KoriExecutive Officer, Director
  • Seth GoldmanExecutive Officer
  • David StrasserDirector
  • Robert LatchfordExecutive Officer
  • Elizabeth CutlerDirector
  • Jereme HolimanExecutive Officer
  • Alexander PessalaDirector
Offering amount
$6.8M
Amount sold
$6.6M
Minimum investment
$1
First sale
Apr 2017
Incorporated
Corporation, Delaware, 2013
Federal exemptions
06b
Full filing on SEC EDGAR ↗
$6.8MraisedApr 2016 · 16 investors · Other
Rule 506(b)
Officers, directors & promoters on the filing
  • Ajay KoriExecutive Officer, Director
  • Alexander PessalaDirector
  • Jeff SheelyExecutive Officer, Director
Offering amount
$6.8M
Amount sold
$6.8M
Minimum investment
$1
First sale
Apr 2016
Incorporated
Corporation, Delaware, 2013
Federal exemptions
06b
Full filing on SEC EDGAR ↗
$900KraisedApr 2016 · 11 investors · Other
Rule 506(b)
Officers, directors & promoters on the filing
  • Jeff SheelyExecutive Officer, Director
  • Ajay KoriExecutive Officer, Director
  • Alexander PessalaDirector
Offering amount
$900K
Amount sold
$900K
Minimum investment
$1
First sale
Nov 2015
Incorporated
Corporation, Delaware, 2013
Federal exemptions
06b
Full filing on SEC EDGAR ↗
$1.5MraisedFeb 2015 · 9 investors · Other Technology
Rule 506(b)
Officers, directors & promoters on the filing
  • Alexander PessalaDirector
  • Ajay KoriExecutive Officer, Director, Promoter
  • Jeff SheelyExecutive Officer, Director, Promoter
Offering amount
$1.8M
Amount sold
$1.5M
Minimum investment
$15K
First sale
Jan 2015
Incorporated
Corporation, Delaware, 2013
Federal exemptions
06b
Full filing on SEC EDGAR ↗

Source: SEC EDGAR Form D. Amounts as filed; amended filings shown once at their latest values.

Company profile

researched Aug 2026

UrbanStems is a direct-to-consumer floral gifting company that sells bouquets, plants, and gift bundles online for delivery to recipients across the United States. The company designs arrangements in-house and sources stems directly from Rainforest Alliance Certified farms, positioning itself as a vertically integrated alternative to the traditional "flower wire" model in which national brands pass orders to local florists who reinterpret an arrangement from a description. Products are sold as one-time gifts or as recurring flower subscriptions, and the catalog is organized by occasion (birthday, sympathy, new baby, congratulations, housewarming and similar) and by collection (Flowers, Plants, Gifts, Classics and Vogue), with individual bouquets listed at roughly $55 to $239 and subscriptions starting at $60 with free shipping.

Fulfillment combines same-day delivery in New York City, Washington, D.C., Los Angeles, Chicago, Atlanta, Miami, Dallas and Boston with coast-to-coast next-day delivery by courier or truck. Alongside flowers, the company merchandises partner and add-on products including wine-and-bouquet pairings, Levain cookies and a co-marketed bundle with baby-essentials brand Coterie. Customer retention programs include a points-based rewards scheme, a subscribe-and-save discount of up to 30%, and a referral credit offer.

Founding story

Co-founder Ajay Kori conceived the business in 2013 while living in Washington, D.C. and trying to send flowers to someone in Philadelphia, finding the process marked by clunky websites, unpredictable delivery windows, inconsistent quality and opaque pricing. He recruited Duke University friend Jeff Sheely, having previously worked at Quidsi, the parent of Diapers.com. The pair tested demand by buying flowers at Costco, assembling simple bouquets and delivering them by bicycle to friends and acquaintances for $15-20, taking orders through a basic Squarespace site before building out infrastructure.

Business model

UrbanStems sells florals and gifts directly to consumers through its own e-commerce site rather than routing orders to third-party florists, controlling design, sourcing and delivery in-house. It works directly with its farms, employs its own designers and, in its earlier bicycle-courier operation, used W-2 employees rather than independent contractors. Revenue comes from one-off gift purchases, a subscription plan, and attached gift items such as vases, wine and cookies, supported by loyalty points and referral credits to drive repeat orders.

Transactional online sales of bouquets, plants and gift bundles (roughly $55-$239 per item) plus recurring flower subscriptions starting at $60 per delivery with free shipping and discounts of up to 30% for subscribers.

Traction

More than 10 million customers served as of January 2024 according to a company board member; more than 20,000 five-star reviews displayed on the site; same-day service expanded to four new markets in the six months before January 2024, reaching seven metros then and eight as listed on the current site. Under co-founder Ajay Kori the business grew from nothing to more than 100 employees and millions of dollars in annual revenue by 2019, and appeared on Inc.'s fastest-growing companies list for 2015-2019. Secondary coverage describes the company as valued at over $100 million.

Latest developments

In January 2024 UrbanStems announced $5 million in Series C extension funding from existing investors, led by SWaN & Legend and DF Enterprises, alongside the launch of same-day delivery in Miami and a limited-edition Flamingo Bouquet available through February 4, 2024. The company's site now lists same-day delivery in eight cities, adding Dallas and Boston, and features gifting collaborations with Coterie, Levain Cookies and curated wine pairings. A site redesign required customers inactive since November 6, 2024 to reactivate their accounts.

Full profile — market position, technology, go-to-market, geography, history, risks & controversies

Market position

Positioned as a modern, design-led challenger to legacy national flower-delivery brands that rely on local-florist wire networks. Company communications describe it as a premium/luxury floral gifting brand; a January 2024 board-member statement said the company had sent gifts to more than 10 million customers. Coverage notes it ranked among the fastest-growing U.S. companies on the Inc. list between 2015 and 2019.

A fully integrated supply chain with direct farm sourcing and no wire-service middlemen, in-house floral design intended to produce exclusive looks, transparent flat pricing, guaranteed freshness with remediation by a care team, and same-day delivery in eight major metros as a stated key differentiator in the luxury floral segment.

Technology

Consumer-facing e-commerce platform with occasion and collection browsing, filtering by category, price, color, stem type and vase pairing, delivery-date selection at the product level, accounts and subscription management, live chat support, and a rewards/referral system. The site was redesigned and relaunched, requiring customers who had not logged in since November 6, 2024 to reactivate their accounts.

Go-to-market

Direct-to-consumer e-commerce with occasion-based merchandising, same-day delivery in flagship metros as a differentiator, brand collaborations (Coterie, Levain Cookies, wine pairings), customer reviews on-site (more than 20,000 five-star reviews cited), Instagram social presence, a referral program and a points-based rewards program. City launches are supported by publicity, such as a limited-edition "Flamingo Bouquet" tied to the Miami same-day launch.

Consumers sending flowers and gifts as gifts or to themselves, concentrated in major U.S. metropolitan areas served by same-day delivery, with nationwide next-day coverage for remote gifting occasions such as birthdays, sympathy, new babies and thank-yous.

Geography

Headquartered in Washington, D.C., where the company launched, with New York-based design talent referenced in company communications. Same-day delivery covers NYC, Washington, D.C., Los Angeles, Chicago, Atlanta, Miami, Dallas and Boston; Jersey City was also cited as a same-day market in early 2024. Next-day delivery is available coast to coast across the U.S.

History

UrbanStems launched during Valentine's Day week 2014 in Washington, D.C., offering bouquets from $35 with free delivery within an hour via an in-house fleet of bicycle couriers staffed by W-2 employees. It expanded to New York City and by 2017 was growing quickly; on Valentine's Day 2017 the company suffered a fulfillment breakdown in which orders outpaced capacity, delivery windows were missed and new orders were suspended until the backlog cleared, after which Kori emailed affected customers with his personal phone number and took more than 300 calls. Recognizing a need for operational leadership, the founders recruited Seth Goldman, former U.S. CEO of HelloFresh, initially as Chief Operating Officer and then offered him the CEO role, with Kori moving to chairman; Kori served as CEO until 2019. By January 2024 Meenakshi Lala was Chief Executive Officer. The company continued adding same-day markets, reaching Atlanta and Chicago in late 2023, Miami in January 2024, and Dallas and Boston as listed on its current site.

Risks & controversies

The business is exposed to extreme seasonal demand concentration: Valentine's Day can represent up to 30-40% of annual revenue for flower delivery companies, and UrbanStems' own Valentine's Day 2017 operational failure led to missed guaranteed delivery windows, a suspension of new orders and significant customer dissatisfaction. Perishable-goods logistics and rapid multi-market expansion add operational complexity, and co-founder Ajay Kori has publicly described severe founder burnout during his tenure as CEO that he says affected decision-making and executive team dynamics.

Compiled by commissioned research from 8 cited public sources — announcements, filings, and press listed under research sources below.

Key figures

latest reported
Company valuation (as characterized in secondary coverage)Jan 2026valued at over $100 million
Customers servedJan 202410,000,000 customers
EmployeesJan 2019100 employees
Five-star customer reviews on siteJan 202520,000 reviews
Same-day delivery citiesJan 20258 cities
Subscription starting priceJan 2025$60
Total funding raisedNov 2021$48M

Company-reported or press-reported figures, each dated to when it was claimed — not independently audited.

Competitors · 5

by search overlap

Companies competing with UrbanStems for the same Google search keywords, organic and paid, via search-intersection analysis.

Timeline · 8

launches, deals, and filings
Jan 2025
Gifting collaborations with Coterie, Levain Cookies and wine pairings

The site merchandises co-branded bundles pairing bouquets with Coterie baby essentials, Levain cookies and curated wine selections.

source ↗

Jan 2024
Same-day delivery launched in Miami

UrbanStems extended its same-day delivery service to Miami, its fourth new market in six months, and released a limited-edition Flamingo Bouquet available through February 4, 2024.

source ↗

Jan 2024
$5M Series C extension from existing investors

Secured $5 million in Series C extension funding led by SWaN & Legend and DF Enterprises with additional participation from existing investors, to fund same-day delivery expansion.

$5M source ↗

Jan 2023
Same-day delivery added in Atlanta and Chicago

The company added same-day service in Atlanta and Chicago in late 2023, alongside legacy markets Washington, D.C., Los Angeles, New York City and Jersey City.

source ↗

Jan 2019
Named among Inc.'s fastest-growing U.S. companies

UrbanStems was cited by Inc. magazine as one of the country's fastest-growing businesses between 2015 and 2019.

source ↗

Jan 2019
Ajay Kori stepped down as CEO to become chairman

Kori served as CEO until 2019 before moving to the chairman role; the founders recruited Seth Goldman, former U.S. CEO of HelloFresh, as Chief Operating Officer and then offered him the CEO role.

source ↗

Feb 2017
Valentine's Day 2017 fulfillment failure

Orders outpaced fulfillment capacity, delivery windows were missed and new orders were suspended until the backlog cleared; Kori emailed affected customers with his personal phone number and received more than 300 calls.

source ↗

Feb 2014
UrbanStems launched in Washington, D.C. during Valentine's Day week

Co-founders launched the service on Valentine's Day 2014 in Washington, D.C., with bouquets starting at $35, free delivery and a promise of delivery within an hour by an in-house bicycle courier fleet.

source ↗

Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.

Legal entities · 1

corporate structure
UrbanStemsDelaware

Research sources · 8

primary sources listed

8 public sources were cited for this profile; the first-party ones are listed here.

Frequently asked questions

What does UrbanStems do?
UrbanStems is an online flower and gift delivery company offering same-day delivery in eight U.S. cities and next-day nationwide.
Who founded UrbanStems?
UrbanStems was founded by Ajay Kori, Jeff Sheely in 2013.
Who are UrbanStems's investors?
UrbanStems's investors include Dopamine Ventures, Innvotec Ltd., Motley Fool Ventures, NextGen Venture Partners, SWaN & Legend Venture Partners, The Players' Impact, Valence Ventures.
How much funding has UrbanStems raised?
UrbanStems has disclosed $35.3M raised across 5 of its 6 known rounds.
Where is UrbanStems headquartered?
UrbanStems is headquartered in Washington, US.