Ordergroove Raises Over $100 Million to Fuel Its Rapid Growth, Helping Brands and Retailers Increase Customer Lifetime Value and Generate Recurring Revenue
NEW YORK — November 10, 2022 – Ordergroove, the leader in subscriptions for retailers and direct-to-consumer brands like L’Oréal, Bonafide, The Honest Company, La Colombe, and PetSmart, today announced $100 million in financing led by growth equity firm, Primus Capital Partners.
The raise will be used to double down on the company’s investments in its best-in-class subscription technology and continue to develop its next-generation frictionless shopping experiences as it ushers in the Relationship Commerce era set in motion by Ordergoove more than a decade ago. From its beginning as a mere innovative idea, the eCommerce subscriptions market is expected to approach $1 trillion by 2026. “This vote of confidence by Primus underscores our leadership position in the category,” said Greg Alvo, Founder and CEO of Ordergroove.
“With customer acquisition costs at an all-time high, recurring revenue has never been more critical to brands and retailers,” Alvo said. “Subscriptions are hard, and Ordergroove makes it easy and delightful for both Fortune 2000 companies and emerging brands to become subscription-first. This partnership with Primus will allow us to fuel our rapid growth and continue to scale our investments in product and innovation.”
Ron Hess, Managing Director at Primus, seconded the salute to Ordergroove’s paradigm-shifting leadership:
“Our goal at Primus is to seek out companies that are making an exceptional impact on a sector, which Ordergroove is doing with retail and eCommerce. The Ordergroove team has built an industry-leading platform to help brands build more sustainable revenue streams—and to scale in response to consumer demand,” Hess said. “They also share our vision for what the future of the subscription market will look like. Ordergroove’s delivery of ‘Relationship Commerce’ has not only shown resilience but is truly beneficial for both buyers and sellers alike.”
As customer acquisition costs have risen dramatically over the past five years, more and more retailers and fast-growing DTC brands are turning to Ordergroove to maximize customer lifetime value and grow recurring revenue. Brands including Peet’s Coffee, OLLY, and IL MAKIAGE trust Ordergroove to power their subscription experiences, driving billions in gross merchandise volume (GMV) processed annually by the company. Just in 2022, Ordergroove has seen a 59% increase in GMV over 2021.
“The Honest Company has always been a subscription-first brand which is why we turned to Ordergroove’s technology,” said Pete Gerstberger, Chief Digital and Strategy Officer at The Honest Company. “Ordergroove’s infrastructure and analytics capabilities enable us to build and sustain strong, long-lasting consumer relationships that center around the most important moments in all of our lives.”
Ordergroove’s platform-agnostic design allows the company’s technology to integrate with leading eCommerce platforms, including Shopify, BigCommerce, Salesforce, Magento, SAP Commerce, and custom eCommerce platforms. To learn more about Ordergroove or schedule a demo, please visit Ordergroove.com.
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- [Yahoo Finance] Ordergroove Raises Over $100 Million to Fuel Its Rapid Growth, Helping Brands and Retailers Increase Customer Lifetime Value and Generate Recurring Revenue
Ordergroove enables Relationship Commerce experiences for hundreds of brands and retailers, including The Honest Company, Peet’s Coffee, Il Makiage, Hotel Chocolat and PetSmart, shifting consumer interactions from one-and-done transactions to frictionless and highly profitable recurring revenue relationships. With successful subscription and membership experiences, the company’s technology platform coupled with artificial intelligence, analytics and unmatched consumer expertise helps top brands transform their commerce experiences across every channel while making their consumers’ lives easier.