Berlin-based Grover, a company that enables people to subscribe to tech products monthly instead of buying them, announced that it has raised $250M (approx €221.43M) in an asset-backed facility from London-based Fasanara Capital.
The announcement follows a $1B in equity and asset-backed debt and equity financing Grover secured in July, and the launch of The Grover Card in partnership with Visa and Solarisbank in early November. The card offers a three per cent return on everyday purchases, which is then turned into Grover Cash rewards, tracked and redeemed against tech subscriptions in the app.
Aims to democratise access to consumer tech
Founded in 2015 by Michael Cassau, Grover aims to create an innovative way for everyone to get the tech they want. To do that, the company enables people and businesses to rent technology on a monthly basis. Grover claims its rental model is sustainable and circulates tech products so that they’re used for a longer period instead of being stored away in drawers.
The platform allows subscribers to select from over 3,000 products and allows them control of the subscription length to maximise affordability. The products include smartphones, laptops, virtual reality (VR) gear, wearables and smart home appliances.
At the end of the original subscription period, the customer can either buy the product, send it back, or continue on a month to month basis. The returned products are refurbished to an ‘as new’ condition and recirculated to make sure they stay in use and out of landfills.
When the product reaches the end of its life, Grover’s circular supply chain ensures the materials are reused or recycled. Moreover, consumers are provided with 90 per cent cover of the cost of any damage. The company’s number of circulations has nearly been over 500,000 devices.
According to the UN, the world generates 50 million tonnes of e-waste each year, and only 20 per cent is recycled. Grover aims to increase its circular electronics subscription service to 5 million by 2024, which will avoid 24,000 tonnes of e-waste or 260,000 tonnes of CO2 equivalent.
The company has raised a total funding of around €1.3B to date from investors including JMS Capital-Everglen, Augmentum, coparion, Circularity Capital, Viola Fintech, Seedcamp, and Samsung Next. Grover is currently active in Germany, Austria, the Netherlands, and Spain, and employs around 400 people.
Funds for expansion in the US
Grover has witnessed increasing demand for their subscription service in the US and reports to have surpassed its subscriber targets since launching in September this year. The company will use the raised capital to accelerate that growth.
Speaking on the development, Thomas Antonioli, Grover’s CFO, says, “We are very proud of the major milestones we have achieved this year; raised more than $1.3B in equity and asset-backed debt; launched our business in the US; and most recently announced our first step into the embedded finance world with the Grover Card.”
“We are excited about this funding deal for the US market, which will allow us to bring circular electronics to many more people, progressing our mission to reduce the 50 million tonnes of electronic waste the world produces each year,” adds Antonioli.
The German-born startup has grown its user base to more than 1 million registered users in Europe, while the US is growing significantly ahead of plan.
