OrderGroove, a startup that allows brands to create subscription and membership commerce, has raised $7 million from Fung Capital USA, 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.
Brands turn to OrderGroove to add subscription commerce models to their e-commerce sites. For example, L’Oreal uses OrderGroove’s SaaS to offer a monthly box of skincare products.
OrderGroove has tripled its client roster in the past twelve months to more than 60 brands, including Grainger, L’Oreal, Jockey, NBTY, Freshpair and Lot18. The company has experienced 430% year-over- year revenue growth.
Although the model has been questioned, Greg Alvo, founder and CEO of OrderGroove, says that the subscription commerce model works better for brands because they already have customers. The subscription part is a way to retain and discover new products within the family.
The funding will be used for product development and hiring in engineering, services, sales and marketing, as well as rapidly move into new verticals and channels.
OrderGroove delivers subscription retail solutions to over 70 online brands including CVS, Grainger, L’Oreal, Jockey and Lot18, empowering shoppers to subscribe to frequently purchased items as well as join monthly product discovery clubs. By turning new and existing customers into repeat buyers, OrderGroove helps retailers tap into the power of convenience to turn new and existing customers into repeat buyers – building recurring revenue streams, maximizing profitability, and increasing customer lifetime value by 200% - 400%. The company is...