SAN FRANCISCO — Grove Collaborative, a company developing eco-friendly products for consumers, has completed a $150 million Series D financing. The funding is co-led by Lone Pine Capital, General Atlantic, and Glynn Capital with participation from Greenspring Associates as a new investor as well as from existing investors Norwest Venture Partners, Mayfield Fund, NextView Ventures, MHS Capital, and Heron Rock Capital.
“There is a common misperception that relatively few consumers are motivated by conscientious values like health and sustainability,” said Stuart Landesberg, co-founder and CEO. “Yet every day at Grove we see the passion families from across a myriad of communities have for effective, safe, and affordable products that protect our shared home. We believe in a world in which sustainability is scalable and that, rather than simply reducing waste, we can use consumer products as vehicles for widespread, long-lasting, positive human and environmental impact.”
Grove, a Certified B Corporation nearly since founding, plans to use the new capital to expand into the clean beauty category, to invest further in its sustainable packaging and supply chain, and to support the growth of the company’s ‘Grove Guide’ program, a personalized concierge service staffed by a dedicated team of experts on healthy and sustainable homes. A testament to the company’s ability to bring new consumers to the category, 50% of Grove’s customers are trying natural home and personal care for the first time.
Key areas of investment include:
- Clean Beauty: Expand into clean beauty, a category expected to reach $24 billion by 2024.
- Packaging and Product Development: Further Grove’s commitment to developing innovative sustainable products and low-waste packaging, which will save nearly 1 million pounds of plastic in 2019 and more than that in 2020.
- Infrastructure + Customer Connection: Each week, nearly 50,000 customers chat, email, text and talk with Grove Guides who answer questions and provide education on natural products. To build even deeper connections with customers and broaden its emphasis on conversational commerce, the company plans to double the Grove Guide team, adding more than 100 new employees within this vertical.
“With its lens on the changing habits and preferences of consumers, Grove has grown more than six fold over just the past two years,” says Andrew Ferrer, Managing Director at General Atlantic, a leading global growth equity firm, who co-led the Series D. “We’ve been impressed by their ability to innovate while remaining true to their mission. We’re looking forward to what’s next.”
Grove, which develops its own products under the Grove Collaborative®, Seedling by Grove™, Rooted Beauty™, Honu™ and Sustain® brands, in addition to curating exceptional third-party natural brands, has focused on creating formats that reduce waste while lowering cost to the consumer. Innovations like one-ounce concentrated surface cleaners and a reusable glass laundry vessel use 70%-95% less plastic than conventional alternatives. The company expects plastic savings from these initiatives to reach nearly 1,000,000 pounds in 2019.