Natural home products startup Grove Collaborative bets niche wins over the Amazonization of everything
Who needs Amazon when you can make your own online distribution channel? At least, that’s the idea behind Grove Collaborative, a natural home care products company that ships natural cleaning brands like Method and Mrs. Meyer’s.
Co-founder Stuart Landesberg started the company in 2014 after working with retail brands during his time as an investor at TPG. He noticed how limited shelf space was for brands in brick-and-mortar stores and the idea came to him to launch a tech company that could help move products by prompting consumers to buy at the ideal time. The company pivoted to online retail products in 2016 and rebranded itself as Grove Collaborative.
But consumers have a lot of choices in this space and the brands offered through Grove could just as easily get to your door through same-day shipping on Amazon.
As unlikely as it seems a customer would turn to Grove when there’s the convenience of Target or Amazon, Landesberg tells TechCrunch the company has raked in “tens of millions of dollars” in revenue and that it has “hundreds of thousands” of active customers. He also says more than half of Grove’s customers have never shopped natural before.
Still, he admits there’s no special sauce here. The company is not trying to compete with lower prices and it offers similar prompts as Amazon to re-up supply when you’re likely to be out. But he says the difference is incumbents often prioritize profit over customers and environmental health.
Those numbers also look promising and VC’s have been eager to support Grove on its journey. The startup just pulled in $35 million in Series C funding led by Norwest Venture Partners. The funding comes right on the heels of a $15 million Series B, which quietly closed last March and was led by Mayfield VC.
The primary use of the funding will go toward marketing, which Landesberg told TechCrunch is mostly through influencers such as health bloggers and YouTube personalities with a following in the space.
The startup will also use some of that money to build out new offerings from the main Grove brand, which include items such as hand sanitizer, essential oils, moisturizers and natural sponges.
“Families want to make safe, sustainable, informed choices, and that’s how e-commerce can catalyze real progress,” Landesberg said. “This funding allows us to bring natural products to more homes, and help us build a brand that can serve our community unconstrained by the realities of offline sales.”