It’s the start of another new era at Rover.
The Seattle-based pet-sitting business completed its $2.3 billion deal with Blackstone on Tuesday, marking the latest chapter in a 13-year journey that began at a hackathon and took the company through a pandemic, a public offering, and a giant private equity acquisition.
In an interview with GeekWire, Rover CEO Aaron Easterly — who has led the business since its inception — said he’s bullish about what’s ahead.
“Our market position is as great as it’s ever been,” he said.
Rover surpassed a billion-dollar run rate in the third quarter last year, as measured by gross sales. Revenue was up 30% year-over-year to $66.2 million, with net income of $10.5 million.
A majority of the company’s revenue comes from its marketplace that connects pet owners with sitters for overnight stays. Rover has fueled growth by expanding to different animals such as cats, and in new markets, particularly abroad.
The broader pet industry continues to swell, boosted by increased pet adoption during the pandemic. Bloomberg Intelligence estimated last year that the market size will reach $500 billion by 2030, up from $320 billion in 2023.
“Pets continue to gobble up a larger share of disposable income,” Easterly said.
Rover has dabbled in various ancillary businesses over the years, including grooming, pet gear, training, and other verticals.
Easterly said there are still areas of the pet industry where technology could help bring value.
“The industry was a laggard for a decade in terms of tech adoption, and a large chunk of it is still highly fragmented,” he said.
Blackstone, which has more than $1 trillion in assets under management, will help Rover accelerate parts of its business, Easterly said, pointing to its experience with companies at a similar stage and the advantage of having an investor with a “long-term horizon.”
Asked about any potential workforce reductions following the acquisition, Easterly said he expects headcount to grow.
“This is not about saving a bunch of money,” he said. “This is about keeping a really great trajectory going.”
Rover initially got going back in 2011, when Seattle venture capitalist Greg Gottesman pitched the idea at a Startup Weekend event. The company was incubated inside Seattle-based Madrona Venture Group in its early days.
After years of growth, Rover was hammered by the COVID-19 pandemic that kept many people working from home and forced travelers to cancel vacation plans. In March 2020, it laid off 41% of its workforce.
Rover was able to recover and went public in 2021 through a SPAC merger in a deal that valued the company at $1.35 billion.
Reflecting on Rover’s journey over the past 13 years, Easterly pointed to the commitment from longtime senior leaders and early investors who stuck with the company through the ups and downs.
“This was not an obvious business,” he noted. “It had its share of naysayers early on, and even later.”
In a blog post, Madrona, which held a sizable ownership stake even through the company’s public offering, said it had “immense pride” for Rover’s accomplishments.
“Building and scaling digital marketplaces that deliver great customer experiences is hard — even harder when making them great and profitable businesses,” the firm wrote. “The Rover team achieved both.”
