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.  

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.

As 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.