Sustainable consumer products retailer Grove Collaborative went public today with the help of Virgin Group. The 10-year-old company, which is listed through a SPAC transaction, is now trading on the New York Stock Exchange under the ticker symbol “GROV”.
Grove Collaborative has previously made waves by pledging to be plastic free by 2025. Still, with its public listing, it’s finding another way to stand apart from its peers. This is because the company is now choosing to go public, more or less bucking the trend. 2021 saw a record-high level of IPO activity, with the first quarter of 2022 seeing a 37% year-on-year decline in the number of IPOs globally. data from Ernst & Young. In the US, the numbers are even bleaker—during Q1 2022, there were 37 IPOs (down 72% year-over-year), totaling $2.4 billion (a 95% drop) in revenue.
This is due, in large part, to rising interest rates, higher costs and a general economic slowdown. Russia’s invasion of Ukraine inspired some companies To reconsider your IPO plans. As such, going public now, as investors scramble to find a safe haven from both stock market declines and inflation, may seem uncertain. The S&P 500 is down more than 10% over the past month, and is down more than 23% since the beginning of the year.
But Grove Collaborative co-founder and CEO Stuart Landsberg says he and the company are not concerned with short-term events in the market, and instead, have a long-term vision with the potential to woo all kinds of investors. . ,
“For me, it’s not about the stock ticker,” he tells WebMD. fast company, “I can’t control the market next week or the next six months. But I don’t care. What I care about is doing it today, and getting closer to accomplishing my mission.”
That mission includes reducing Americans’ addiction to plastics in particular and single-use plastics. Tackling the problems with plastics provides a mass-market opportunity, Landsberg says, and by going public, it not only raises money for the Grove affiliate to expand its retail reach, but also for buyers and investors. It also enhances the profile of the company.
“We have a crazy plastic addiction,” says Landsberg, adding that, over the years, plastics “have created a lot of value for investors.” But, he continues, “this is a trillion-dollar market opportunity to solve it – with a multi-year outlook, we are moving into a market that is absolutely inevitable 20 years from now.” ” “What has always made this company attractive to investors,” he says.
Landsberg says that in keeping with the long-term change, with the fervor taking on the Grove allies public, he won’t let a bear market go and the prospect of a recession will take him down. “I’m completely surprised [going public]regardless of market conditions,” he says.