(Valore CEO Kevin Walker | Image via Valore)
When SimpleTuition acquired ValoreBooks roughly two and a half years ago, the goal was to help college students cut costs across the board, from their student loans to their textbooks. Although that mission hasn't changed, "the center of gravity has," according to SimpleTuition Co-founder Kevin Walker.
The Fort Point company announced Thursday its new corporate identity: Valore, a name that will encompass SimpleTuition, ValoreBooks and SmarterBucks, a rewards program launched by in April 2012 SimpleTuition to help students pay down their student loans.
"The acquisition was hugely transformative for us," Walker said. "We're still, in many ways, the same business we were."
Where the company's money is coming from is what has changed. At the time of the acquisition, SimpleTuition was doing roughly $10-12 million in retail sales, according to Walker. The year following the acquisition, that number jumped to $30 million; last year, it rang in at $80 million.
Valore's revenue has moved in tandem with that growth — a fact reported exclusively in the BostInno Beat last week. In 2014, the company nearly tripled its revenue to more than $65 million, with SimpleTuition accounting for roughly 10 percent of that. Valore is now on track to exceed $100 million by the end of the year and, if that trajectory continues, by 2017, the company "should be big enough to consider an IPO," said Walker.
When asked what's made the partnership so successful, Walker pointed to two factors. One is that SimpleTuition "had a ton of student traffic," so when ValoreBooks was plugged in "it brought a lot more attention and activity to the platform." More than 10 million students visited the site in 2014 to buy, rent or sell their textbooks.
By 2017, Valore "should be big enough to consider an IPO," according to CEO Kevin Walker.
Second is that, over the last year and a half, Valore has shifted its focus more on the enterprise, by enabling online retailers, wholesalers and college bookstores to buy and sell course material directly to each other through its marketplace.
"Our marketplace can serve an individual, or an enterprise," Walker said. "No matter how big or small you are, you can use the marketplace."
To better support the enterprise side of Valore's business, the company hired Geoff Greene as its chief technology officer. Greene joined the team in September 2014, after serving as the CTO of both custom jewelry startup Gemvara and recruiting software firm Bullhorn. Also new to the team as of 2014 is Geoffrey Willison, the company's chief operating officer and head of finance. Most recently, he served as COO of payments startup Plastiq, which made moves to San Francisco in July after raising a $10 million Series B.
ValoreBooks Founder Bobby Brannigan, who previously served as the company's CEO, has been named president and is still an active part of the now nearly 60-person team.
"We'll continue to staff up," Walker said, noting that the company has now taken over a full floor in its Fort Point building and that it's looking to expand a bit more in the same space — which might need to happen sooner rather than later.
"We'll continue to be aggressive with M&As," Walker added. "Some local, some not."
Although he couldn't speak to the specifics of any deals, Walker hinted that the company was considering services they could relay to students or college bookstores "to help them save money or have more efficient processes."
Valore is also expected to go digital. "One thing that's always surprised me is how little digital activity there is in higher education in textbooks," Walker acknowledged. "Some of the companies we're talking to have roles to play in that future."
The company has raised $26.9 million to date, and has received funding from Atlas Venture, Flybridge Capital Partners and North Hill Ventures.
