NEW YORK, NY--(Marketwire - Nov 5, 2012) - OrderGroove, a pioneer and leader in subscription and membership commerce, today announced that it has secured more than $6.7 million in venture capital financing. Fung Capital USA led the oversubscribed Series B round, with additional investment from Lerer Ventures, Legend and SWaN Ventures, Allegro Venture Partners, Bee Partners, as well as former Walmart.com CEO Raul Vazquez and NEW Corporation's Chairman Fred Schaufeld. OrderGroove will use the funds to introduce new products and services to the platform, add key new hires in engineering, services, sales and marketing, as well as rapidly move into new verticals and channels.
"OrderGroove is directly tackling the age old retail challenge of how to maximize customer lifetime value by enabling the world's largest brands to leverage the subscription model to drive more profitable revenue per customer," said Greg Alvo, founder and CEO of OrderGroove. "As commerce continues to quickly shift online, emulating the offline experience for online customers in a customer-centric and personalized way is critical. OrderGroove's subscription and club model offers the ultimate level of convenience for retailers to remain in step with shoppers, simplifying the hassle of shopping for essentials as well as introducing the discovery of new passions through curated product discovery clubs."
The new financing comes as OrderGroove has tripled its client roster in the past twelve months to more than 60 brands. The world's largest brands and retailers, including Grainger, L'Oreal, Jockey, NBTY, Freshpair and Lot18, have turned to OrderGroove to allow customers to subscribe to frequently purchased items, as well as sign up for monthly clubs. The company has experienced 430% year-over-year revenue growth, with half of OrderGroove's client base having either built or tried their own internal subscription solution prior to partnering with OrderGroove. OrderGroove's SaaS platform consistently delivers 2-4x increases in customer lifetime value across verticals such as health and beauty, B2B and apparel.
"Our success to date is based on the incredible team and strong culture we've assembled over the past few years," Alvo continued. "The fact that we have partnered with a top notch set of investors who intimately understand what it takes to deliver exceptional value and service to retailers, is a testament to the value we've delivered in serving the world's leading brands. Together we look forward to taking OrderGroove's business, team and platform to the next level as we continue to learn and grow from our successes."
According to Gartner, subscription commerce will generate revenue for 35% of the Fortune 2000 by 2015. As a pioneer and leader in the industry, OrderGroove's SaaS technology and team of subscription marketing experts enable retailers and brands to pinpoint, interact and extend relationships with their most valuable customers. The subscription model provides new ways to connect brands, retailers and consumers at the point of purchase, tapping into shoppers' desire for convenience and excitement to drive recurring sales and offer new insight into the products that shoppers depend on most.
"OrderGroove is disrupting retail by forging new relationships between suppliers and retailers that go deep into the supply chain and create a level of predictability and transparency into the future that hasn't existed before," said John Seung, Partner at Fung Capital. "As an investor and Board member, I am incredibly excited about OrderGroove's opportunity as they cement their leadership and scale to support phenomenal growth and innovation."
eCommerce sites turn to OrderGroove for a multitude of reasons including ease of use, iterative new feature releases as well as access to aggregate data and best practices across the OrderGroove network to drive some of the highest subscription response and retention rates in the industry. The OrderGroove engineering team spent the past three years building the platform from the ground up to allow retailers to take advantage of the most sophisticated technology while offering the ultimate flexibility in terms of customer experience.
"One of the most pressing challenges that retailers and brands face today is how to retain customers and increase lifetime value," said Fred Schaufeld, Partner at SWaN Ventures and founder/Chairman of NEW Corporation. "By demystifying the complexities behind a successful subscription marketing program, OrderGroove has responded to merchants' needs of offering a convenient and customer-centric shopping experience to drive incremental revenue and profit per customer."
"We first invested in OrderGroove in 2011 and jumped at the opportunity to further our investment as OrderGroove continues to transform the eCommerce industry," said Eric Hippeau, Partner at Lerer Ventures. "Greg and his team have recruited a top-notch team to execute on a massive opportunity disrupting commerce."
OrderGroove is a pioneer in subscription commerce that enables brands to identify and interact with their most profitable customers to maximize lifetime value. The company's revolutionary SaaS-based platform, coupled with a team of subscription marketing Experts, allows retailers to tap the power of convenience to turn new and existing customers into repeat buyers -- dramatically increasing sales, building customer retention, maximizing lifetime value, and slashing customer defection rates. Brands using OrderGroove include Grainger, Teavana, Jockey, Swanson Vitamins, Freshpair, ReStockIt.com and Sally Beauty. The company is privately held and headquartered in New York, NY and backed by institutional investors including Fung Capital, Legend Ventures, SWaN Ventures, Lerer Ventures and Allegro Venture Partners. For more information, please see www.ordergroove.com.