Grove Collaborative Secures $15 Million Investment from Volition Capital

Grove Collaborative Holdings, Inc., a sustainable consumer products company and plasticneutral retailer, has announced a $15 million investment from Volition Capital. The investment will be used to pay off the remaining $30 million of the companys outstanding term debt facility, with at least $10 million of the proceeds allocated for this purpose by November 30, 2024. This strategic move comes after Grove paid off $42 million of its term debt facility earlier this year, leaving only $7.5 million under its assetbased loan facility.

Volition Capital, a growth equity firm led by Larry Cheng, a member of Groves board of directors, was the primary investor in this funding round. Larry Cheng, known for his successful investments in companies like Chewy, led the investment and will continue to serve on Groves board.

Additionally, as part of the agreement, Volition forfeited and terminated all existing warrants to purchase shares of Groves Class A Common Stock and agreed to modify certain terms of the Companys existing Series A Convertible Preferred Stock. In return, Grove issued Volition 15,000 shares of Groves Series A Convertible Preferred Stock, initially convertible into 7,760,761 shares of Grove’s Class A common stock.

This investment solidifies Volitions confidence in Groves mission and strategy, particularly after the company achieved four consecutive positive adjusted EBITDA quarters and is forecasting sequential revenue growth in the fourth quarter of this fiscal year. The investment from Volition and the debt repayment plan aim to strengthen Groves balance sheet and position the company for future growth as a leader in the sustainable consumer products market.

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