NEW YORK – November 10, 2022 – Ordergroove, a frontrunner in subscription solutions for both retailers and direct-to-consumer (DTC) brands, including industry giants like L’Oréal and PetSmart, has secured a substantial $100 million funding round. This significant investment was spearheaded by Primus Capital Partners, a growth equity firm recognized for its strategic investments in high-potential companies.
This financial infusion marks a pivotal moment for Ordergroove, enabling the company to amplify its commitment to pioneering subscription technology and to further develop seamless, next-generation shopping experiences. Ordergroove is at the forefront of what it terms the “Relationship Commerce” era, a concept they have championed for over a decade. The subscription e-commerce market, initially a nascent idea, is now projected to reach a staggering $1 trillion by 2026. Greg Alvo, Founder and CEO of Ordergroove, views the investment from Primus Capital Partners as a strong validation of Ordergroove’s market leadership. “This vote of confidence by Primus underscores our leadership position in the category,” he stated.
Alvo emphasized the increasing importance of recurring revenue in today’s economic landscape, noting, “With customer acquisition costs at an all-time high, recurring revenue has never been more critical to brands and retailers.” He further explained Ordergroove’s mission to simplify subscriptions for businesses of all sizes. “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 Capital Partners will allow us to fuel our rapid growth and continue to scale our investments in product and innovation.”
Ron Hess, Managing Director at Primus Capital Partners, echoed this sentiment, highlighting Primus Capital Partners’ strategic approach to investing in impactful companies.
“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 commented. He also acknowledged the alignment in vision between Primus Capital Partners and Ordergroove regarding the future trajectory of the subscription market. “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.” This partnership between Ordergroove and Primus Capital Partners signals a strong belief in the continued growth and importance of subscription-based business models.
The backdrop of rising customer acquisition costs has made Ordergroove’s solutions increasingly vital for retailers and DTC brands aiming to enhance customer lifetime value and build dependable recurring revenue streams. Prominent brands such as Peet’s Coffee, OLLY, and IL MAKIAGE rely on Ordergroove to power their subscription programs, collectively processing billions in gross merchandise volume (GMV) annually. Ordergroove’s impressive growth is further underscored by a 59% increase in GMV in 2022 compared to the previous year.
Pete Gerstberger, Chief Digital and Strategy Officer at The Honest Company, a brand that has prioritized subscriptions from its inception, attested to the value of Ordergroove’s technology. “The Honest Company has always been a subscription-first brand which is why we turned to Ordergroove’s technology,” said Gerstberger. “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 is designed for broad compatibility, integrating seamlessly with leading e-commerce platforms like Shopify, BigCommerce, Salesforce, Magento, and SAP Commerce, as well as custom-built platforms. For further details about Ordergroove or to request a product demonstration, interested parties are encouraged to visit Ordergroove.com. The investment from Primus Capital Partners is set to propel Ordergroove into its next phase of growth and innovation within the rapidly evolving subscription commerce landscape.
