Retailers shift their ad spending from TV, radio and print ads to digital ads.
The company provides retailers with membership and subscription services.
OrderGroove Inc., which provides an Internet-hosted software platform for managing retail membership programs and product subscriptions, has raised $6.7 million in a new funding round. OrderGroove says it will use the capital to add products and services to the platform, move into new industries and hire engineering, services, sales and marketing employees.
Fung Capital USA led the funding round, which also included Lerer Ventures, Swan Ventures, Allegro Venture Partners, Bee Partners and former Walmart.com CEO Raul Vazquez, OrderGroove says.
“One of the most pressing challenges that retailers and brands face today is how to retain customers and increase lifetime value,” says Fred Schaufeld, a partner at Swan Ventures. “By demystifying the complexities behind a successful subscription marketing program, OrderGroove has responded to merchants' needs of offering a convenient and customer-centric shopping experience to drive incremental revenue and profit per customer.”
Within the past year, OrderGrove tripled its number of clients to more than 60 retailers, it says. Those retailers include W.W. Grainger Inc., No. 15 in the Internet Retailer Top 500 Guide; Jockey International Inc., No. 309, and NBTY Inc., No. 152, the company says.
Additionally, OrderGrove’s year-over-year revenue is up 430%, it says, though it did not disclose a revenue figure.