Plastic-neutral retailer Grove Collaborative has secured a $15m private investment in public equity (PIPE) investment from growth equity company Volition Capital.
The PIPE follows Volition’s previous $10m investment in Grove’s Series A convertible preferred stock in August 2023, culminating in a total investment of $25m in the company.
Go deeper with GlobalData
The investment round was led by Volition managing partner and co-founder Larry Cheng, who also serves on Grove’s board of directors.
Grove plans to repay the remaining $30m of its outstanding term debt facility with a portion of this investment, along with its existing cash reserves.
The company has committed to using at least $10m of the proceeds for this purpose by 30 November 2024.
Grove repaid $42m of its term debt facility in July.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAs of 30 June, Grove’s pro forma cash and cash equivalents stood at approximately $40.6m.
Once the term loan is fully repaid, Grove’s remaining debt will consist of only $7.5m under its asset-based loan facility.
Grove Collaborative CEO Jeff Yurcisin said: “I’m thrilled to announce this $15m investment from Volition Capital and, specifically [from] Cheng, a reputable investor and current member of our board of directors, reinforcing his confidence in Grove Collaborative’s strategy and mission.
“This investment is designed to allow us to become term debt-free, which is a key next step in our company’s turnaround — after most recently delivering four consecutive positive-adjusted EBITDA [earnings before interest, taxation, depreciation and amortisation] quarters while forecasting sequential revenue growth in the fourth quarter of this year.
“Our strategy to become the platform for conscientious consumers to purchase planet-friendly and wallet-friendly products is more relevant than ever, and I’m excited to continue our focus on creating shareholder value.”
Grove Collaborative operates as a one-stop online destination for sustainable everyday essentials, offering a range of products from more than 240 brands.
