Subscription e-commerce is like dating. The excitement comes from anticipation of the unknown and delight in variety. However, with love, as with online retail, consistency has its benefits. OrderGroove is a startup that helps companies move their “casual daters” into committed partners, and it has raised $6.7 million to help customers take that next step.
OrderGroove’s platform powers subscription and membership commerce for large companies and their brands. This software-as-a-service technology can regularly deliver the products to customers. People can receive a package with dog treats every month, a shipment of vitamins three times a year, or baby diapers on a weekly basis. It gives companies the chance to build recurring revenue, guarantee retention, and increase the lifetime value of each customer.
Over the past year, OrderGroove has tripled its client roster and currently works with over 60 companies, including major names like L’Oreal, Jockey, Johnson & Johnson, Rogaine, and wine seller Lot18.
This second round of funding will go toward expanding OrderGroove’s team and adding services to the platform as well as moving into new channels. Fung Capital led the investment, with participation 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 has based in New York. Read the press release.