Two companies targeting the “mom” demographic with a product lineup that includes party supplies, crafts, toys, and more, Seedling and P.S. XO, are now merging. The combined companies have also now raised $7 million in new funding from UpFront Ventures and Greycroft Partners, in light of the deal and the revenue projections as a combined entity. The two are expected to hit $10 million in revenue by year-end, and more than double that by year-end 2015.
You may recall that earlier this month, the family oriented startup Moonfrye, which is best known as the company that claimed child star Soliel Moon Frye (Punky Brewster)’s involvement, officially announced its rebranding and pivot to P.S. XO, an e-commerce company focused on selling invitations and party supplies.
With a new iOS application and a growing e-commerce business, the company led by CEO Kara Nortman, now Chairman at Seedling, was still targeting the parenting crowd the Moonfyre photo editing app once did, but in a far more practical way – with an online shop where you could buy party supplies kits and decorations, plus a mobile app for managing party invites and thank you’s and more.
The business on its own competed with other greeting card startups and party planning resources including the likes of Red Stamp, Sincerely, Paperless Post, Evite, Shutterfly/Tiny Prints, Minted, and Punchbowl, to name a few. P.S. XO was hoping to differentiate itself with its mobile-first focus and a limited product lineup with “mass market” price points.
Now the company is teaming up with Seedling, in a true “merger of equals” to form a larger company. The new company will retain the Seedling branding, and will offer a one-stop shop for a variety of children- and family focused products, including Seedling’s classic toys, games, and activity kits that appeal to those with the desire to work on arts and crafts projects with their kids, but lack the creative spark (or time, frankly) to get projects up-and-running.
Seedling, a bootstrapped company from New Zealand, has been in business for 7 years and now sells over 350 products in 20 countries both through its website as well as through wholesale and retail channels. The company, which now has offices in L.A. here in the U.S., currently sells to retailers like Neiman Marcus, Nordstrom, Macy’s, Barney’s, Harrods, Selfridges and others. Its retail footprint is the strongest aspect to its business, while P.S. XO brings its e-commerce and mobile capabilities and talent to the merger.
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