- San Francisco-based Grove Collaborative announced that it has raised $150 million in Series D funding at a valuation of more than $1 billion
San Francisco-based Grove Collaborative is a company that is transforming consumer goods into a positive force for human and environmental health. Recently, Grove announced that it raised $150 million in Series D funding co-led by Lone Pine Capital, General Atlantic, and Glynn Capital with participation from Greenspring Associates as a new investor as well as existing investors Norwest Venture Partners, Mayfield Fund, NextView Ventures, MHS Capital, and Heron Rock Capital. Including this round, Grove raised more than $250 million in capital to date. And this round of funding brings Grove’s total valuation to more than $1 billion.
“There is a common misperception that relatively few consumers are motivated by conscientious values like health and sustainability,” said Grove Collaboration co-founder and CEO Stuart Landesberg. “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.”
With this round of funding, Grove is planning to expand into the clean beauty category, invest further in its sustainable packaging and supply chain, and to support the growth of the company’s ‘Grove Guide’ program — which is a personalized concierge service staffed by a dedicated team of experts on healthy and sustainable homes.
As Grove has surpassed a $1 billion valuation, the company has been serving as an example of the value that consumers place on purpose-driven brands and an ability to scale quickly whilst remaining committed to social and environmental change. This funding round will also enable the company to accelerate innovation and continue to scale.
Grove is especially going to invest in packaging and product development by innovating sustainable products and low-waste packaging — which will save nearly 1 million pounds of plastic in 2019 and more than that in 2020. Every week, nearly 50,000 customers chat, email, text, and talk with Grove Guides who answer questions and provide education on natural products. And to build even deeper connections with customers and broaden its emphasis on conversational commerce, the company is planning to double the Grove Guide team by adding more than 100 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,” added General Atlantic managing director Andrew Ferrer. “We’ve been impressed by their ability to innovate while remaining true to their mission. We’re looking forward to what’s next.”
Grove develops its own products under the Grove Collaborative, Seedling by Grove, Rooted Beauty, Honu and Sustain brands. And in addition to curating exceptional third-party natural brands, the company has focused on creating brands that reduce waste while lowering costs to the consumer. Some of the innovations that the company introduced include one-ounce concentrated surface cleaners and a reusable glass laundry vessel that uses 70%-95% less plastic than conventional alternatives. And the company is expecting plastic savings from these initiatives to reach nearly 1,000,000 pounds in 2019.
Seedling by Grove — the company’s tree-free paper products are made entirely from upcycled sugar cane and bamboo — was chosen for its fast rate of regeneration and high carbon sequestration. And through a partnership with the Arbor Day Foundation, each Seedling product funds the planting of new trees in the U.S. So far, more than 10,000 trees have been planted through this program.
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