Grove Shares Surge After Launching Amazon Aggregation Division

By Sam Boughedda

Investing.com — Grove Inc (NASDAQ:GRVI) a hemp, health, and wellness company, said Thursday that it has launched a wholly-owned division named Upexi to go after Amazon (NASDAQ:AMZN) and eCommerce businesses.

Grove shares opening 57% higher than Wednesday's close at $7.93. The rally has continued after the open, with its stock currently trading at $8.17, up 63%.

Grove made a name for itself in the CBD/cannabis space and has begun to branch out into other markets, recently acquiring Vitamedica, an online nutraceutical company.

Upexi will be Grove's eCommerce division, acting as a suitor to business owners looking to sell.

"With Upexi, potential sellers will be able to access Grove’s programmatic ad technology, in-house digital marketing experts, and direct partnership with a team of expert Amazon PPC buyers who fine tune listings or start from scratch," the company said in its statement.

According to Market Pulse, funding has poured into Amazon aggregator businesses since last year, with the amount raised climbing to $10 billion. Thrasio, an Amazon aggregator business, recently raised over $2 billion and could be valued at up to $10 billion, according to Bloomberg.

Grove CEO, Allan Marshall, set out the company's strategy: "Amazon aggregation has been a goal for us since the beginning. We’re hoping to add 10+ Amazon and Ecommerce businesses to the portfolio over the next year, and another 10 the following. We want to reward people for what they’ve done and give them the ability to see their brand grow under Grove. In many cases, we hope to attract the Amazon/ecommerce experts behind these brands and continue to add talent to our team.”

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