HumanCo Investments (HCI), an affiliate of investors owning over 5% of Grove Collaborative Holdings, Inc., sent a public letter to Grove's Board of Directors on July 8, 2025. The letter called for a comprehensive review of strategic alternatives, including a potential sale to a larger strategic company or financial sponsor, or a transformative merger.
HCI believes Grove is deeply undervalued in the public market, citing a fully diluted enterprise value of approximately $75 million, which is 0.4x its 2025 estimated revenue. This valuation represents over a 95% decline from its $1.5 billion valuation when it went public.
The shareholder group suggested Grove could be conservatively valued at approximately 0.70x to 0.90x its 2025 estimated revenue in such a transaction, equating to a 90% to 140% premium to the company's current share price of $1.19. HCI emphasized Grove's strong competitive moat, 700,000 active customers, and positive Adjusted EBITDA in FY 2024.
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