Ordergroove is raising $100 million to help online merchants transition to subscription offerings. The American startup on November 10, 2022 announced this fundraising from Primus Capital Partners and other investors, whose names were not disclosed.
Ordergroove offers help for online merchants to customize the subscription offers popularized by Amazon and its Prime subscription. Behind this is the idea to offer a hassle-free customer experience, in particular through fully integrated payments or setting up recurring purchases. Subscriptions also increase the average shopping cart value, according to Ordergroove. The startup claims that its solution is independent of the e-commerce platform used and can be integrated with any solution (Shopify, Salesforce, etc.).
Ordergroove reports that the global e-commerce subscription market will grow 65% to reach $904.2 billion by 2026. The startup explains that turning to such a strategy allows online merchants to increase their recurring income by deepening and personalizing their relationships with customers. Ordergroove offers a customer data analytics solution to help you predict needs. The goal then is to actively engage them with targeted offers.
With this financial contribution, Ordergroove wants to double its investment in research and development while continuing to strengthen its sales teams. Competing with Amazon on what made it successful is tough. But Overgroove says it has about 500 clients, including big names like L’Oréal, Gillette and Nestlé.
Amazon is the benchmark in the subscription space. The e-commerce platform has won a large number of customers thanks to Amazon Prime, which allows you to deliver a large number of products for free, as well as access other services such as streaming video or music. Amazon has also developed and offered solutions for “Dash Buttons”, which are currently out of production, which are connected devices that allow you to order a product with a simple push of a button, as well as voice control using Alexa.
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