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Ordergroove approaches profitability as it eyes IPO

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Illustration: Sarah Grillo/Axios

Ordergroove, which offers subscription solutions for retailers and brands, will be approaching profitability by this summer, CEO Greg Alvo tells Axios exclusively.

Why it matters: The company plans to pursue an IPO and will evaluate where it stands at the end of 2024, he says.

What they're saying: "Our primary focus today is becoming profitable in tandem with heavy R&D investments to accelerate growth," Alvo says.

  • "These are discussions we've had with our investors but given the growth and previous cashflow, we're luckily not under a time constraint," Alvo says.
  • "Thanks to our recent growth, we're poised to achieve profitability this year and are not looking to fundraise further at this time," he says.

Zoom in: The company declined to comment on specific sales and gross merchandise volume (GMV) numbers, though it says GMV is in the billions and grew 55% this year.

  • Driving growth are new customers Dollar Shave Club, SharkNinja, Trade Coffee, Solo Brands, Black Rifle Coffee Company, and Snoopslimes.
  • They join existing customers such as GNC, Tractor Supply Co., L'Oréal, Bonafide Health, and The Honest Company.

By the numbers: In three months since migrating to Ordergroove, La Colombe's subscriber base grew by 41%, and their average order value (AOV) increased by 12%, per Alvo.

  • Wellness brand OLLY saw 73% subscriber base growth in 12 months, with subscription orders increasing by 108%.
  • After Good Ranchers switched to Ordergroove, the brand experienced 172% growth in its subscriber base, a 227% boost in subscription orders, and a 142% increase in recurring subscription revenue.

What's next: Ordergroove plans to expand into the U.K. later this year.

Catch up quick: Ordergroove raised a $100 million Series C round led by Primus Capital Partners in 2022.

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