Online pet care marketplace Rover Group was acquired by private equity funds managed by Blackstone in an all-cash transaction valued at approx $2.3 billion.
Rover was created to provide an alternative to relying on friends, family, neighbors and/or boarding facilities for pet care. Over the years, Rover offerings have grown to include five basic services that cater to both daytime and overnight needs. Since the launch of the platform, more than 93 million services have been booked with Rover for more than 4 million pet parents In early 2022, Rover too partnered with Petco to offer its pet sitting, boarding and dog walking services directly through the retailer’s website.
With Blackstone’s investment, the company plans to expand its global footprint and expand fuel initiatives, though details of what those initiatives are were not provided.
“We are excited for the next chapter in Rover’s story and look forward to working with the Blackstone team, who share our belief, excitement and strategic vision,” said Aaron Easterly, Co-founder and CEO of Rover in a statement. “Blackstone brings deep expertise in partnering with innovative technology companies, and with their support and collaboration, we plan to continue investing in our business in service of our mission to make it possible for everyone to experience the unconditional love of a pet in their life. ”
Following a pandemic-prompted boom in pet ownership, the pet care category is expected to continue to experience rapid growth in the coming years, with Morgan Stanley estimating 8% annual growth for the category and potential reach $277 billion in spending by 2030. Additionally, Morgan Stanley predicts that pet services will lead that growthwith spending expected to increase in this segment 143% by 2030 until $118 billion.
“We believe Rover has significant runway for growth as pet owners increasingly place a premium on high-quality care, flexibility and convenience,” said Tushar Gupta, a Principal at Blackstone in a statement. “We look forward to partnering with management to build their leading online marketplace and leverage Blackstone’s extensive expertise and resources to support the company’s continued expansion as a private company.”
