Online pet care marketplace Rover Group has been 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, offerings on Rover have grown to include five core services addressing both daytime and overnight needs. Since the platform’s launch, more than 93 million services have been booked on Rover by more than 4 million pet parents. In early 2022, Rover too teamed up 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 fuel expansion initiatives, although details of what those initiatives might be were not provided.
“We are excited for this next chapter in the Rover story and look forward to the partnership with the Blackstone team, who share our conviction, 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 lives. ”
Following a pandemic-prompted boom in pet ownership, the pet care category is expected to continue experiencing rapid growth in the coming years, with Morgan Stanley estimating 8% annual growth for the category and the potential to reach $277 billion in spending by 2030. Additionally, Morgan Stanley predicts that pet services will lead that growthwith spending in this segment expected to rise 143% by 2030 to $118 billion.
“We believe Rover has a 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 upon their leading online marketplace and leveraging Blackstone’s extensive expertise and resources to support the company’s continued expansion as a private company.”