A message from our CEO
Greg Alvo |
Today, I’m excited to announce that Ordergroove has raised $100 million in financing led by fintech growth equity firm, Primus Capital Partners! This is another major milestone in the Ordergroove journey and is only possible because of the talented Ordergroove team, our amazing customers and partners, as well as our supportive investors. The financing allows us to double down on our R&D investments as a product-first company and efforts to scale Relationship Commerce as the next retail revolution, following the same revolution that SaaS created with software.
We’ve been extolling the virtues of subscriptions and the importance of merchant-consumer relationships since we created the Relationship Commerce category over ten years ago. While our conviction generated its share of skepticism over the past decade, our vision is now unquestionably mainstream. In fact, in many cases the embrace of this evolution in retailing is what defines those eCommerce companies thriving amid the current headwinds buffeting the economy when compared with those yet struggling.
The market demand for subscriptions surged during the pandemic. Our data – across multiple customer segments and billions in annualized gross merchandise volume (GMV) – is showing consistent recurring revenue growth. The eCommerce subscriptions market is expected to grow 65%, approaching $1 trillion by 2026. Similarly, we’ve seen GMV of Ordergroove customers grow 59% in 2022 year-to-date over last year.
That said, our industry, like many, shares in the challenges that signal the COVID- 19 tailwind is a thing of the past. Inflation is on the rise and the looming threat of a recession is making it difficult for DTC brands and retailers to make their economics work and operations profitable long-term. Merchants are now forced to navigate increased competition, slowing investments, skyrocketing acquisition costs, and the perils of third-party ad platforms.
The reverberations of these challenges have been growing for some time. Customer acquisition costs have increased by as much as 222% in the last five years and many retail disruptors in the eCommerce space have seen their momentum slow.
We are at an important inflection point. The need to shift from transactions-as-usual to building and owning strong relationships with consumers has never been more pressing or paramount for brands looking to create long-term, sustainable enterprise value.
The next five to ten years will be defined by the brands that embrace this fundamental shift in the very nature of retailing. These brands will be more prescient, more resilient, and more profitable. And, much like their customers, these brands will have a level of autonomy and control necessary to thrive on their own terms.
This round of funding will be used to scale our investment in our existing subscription platform and offerings while adding more fuel to our continued development of innovative and frictionless experiences that deepen the relationships between a merchant and the end-customer, as well as with the eCommerce ecosystem itself.
We’re at the forefront of the market with the tools and technology to offer unparalleled flexibility for both brands and consumers that capture demand, build reliable recurring revenue streams, and reduce reliance on third parties.
In the coming weeks we’ll be announcing further innovations to our products and new initiatives with our partners.
If you are looking to secure recurring revenue streams, increase lifetime value and deepen trust and loyalty with customers, please reach out for more information. We’d be delighted to share a demo and start building predictable, recurring revenue during these unpredictable times.