Amsterdam-based Peerby, a circular sharing platform that enables neighbours to borrow and lend household items, announced on Tuesday that it has raised €2.3M in a fresh round of funding.
The funding comes after the company witnessed rapid growth post the launch of a revamped model in 2019. The revamped platform’s success comes due to the introduction of a paid membership for borrowers. Peerby’s revenue grew 222 per cent in 2021 and 200 per cent in 2020.
Peerby attributes the growth to supporters inviting their neighbours to join Peerby’s digital neighbourhood sharing shed, which is now filled with over half a million shared products.
Investors in impact and technology
The round was led by Toronto-based tech and impact fund Loyal VC. The firm invests in INSEAD and Founder Institute alumni worldwide. Loyal steps in early with small amounts to monitor performance. Periodically, the ‘best-performing’ companies in the portfolio receive offers for additional investment.
Kamal Hassan, the founding partner at Loyal VC, says, “Peerby, besides being a great impact story, is a testament to the power of persistence. Others have struggled to implement this obvious concept since it has challenging economics. Daan and his team have accumulated years of customer insights and iterated every aspect of their model to crack their industry’s code. Loyal is delighted to support them in expanding the power of sharing.”
The round also saw participation from Dutch impact investor Shamrock Ventures. The firm focuses on early-stage investments in mission-driven tech startups in the Netherlands. It was founded in 2021 under the direction of Tommy Hurley and was co-founded by a group of experienced entrepreneurs, who have made their mark with companies such as Elastic, New Motion and BUX.
Existing investors, including hundreds of crowdfunders, also joined.
Peerby mentions in a statement that 900 crowdfunders, who provided the company with a loan five years ago, were given the opportunity to convert their loan into shares as a result of the investment. A vast majority opted for conversion and 40 per cent of them even decided to buy additional shares.
Funds for expansion
Peerby says that the funding will help improve its impact and the first focus will be to grow in medium-sized Dutch cities. The platform aims to cover the same level of sharing as in its hometown Amsterdam, where 1 in 4 households is a member.
Peerby is also looking to expand internationally, with Belgium already leading the way and rollouts in other countries planned for late 2022 and 2023.
Daan Weddepohl, Founder and CEO of Peerby, says, “The support from members, crowdfunders and professional investors confirms that everyone is eager for an alternative to today’s hyperconsumption. We’ve always had a social and ecological impact and the challenge was to become financially sustainable. Now that we have achieved profitability, the time is ripe to make neighbourhood sharing mainstream.”
“Borrow and rent things with your neighbours”
Founded in 2012 by Daan Weddepohl, Peerby claims to have launched the world’s first working goods sharing platform. It enables neighbours to share goods such as tools, electronics, bicycles and garden, camping and party gear for free or for a fee.
The objective of connecting neighbours and combating waste resulted in a lot of recognition, investments and prizes. This was followed by an expansion to 30 cities in Europe, and the US followed. When the financial model proved untenable in 2017, the startup was forced to pivot in search of a new model. It launched a revamped platform in 2019.
According to recent research by a Dutch environmental research institute, Milieu Centraal, consumers can reduce their climate impact by more than 25 per cent by making circular choices, such as sharing and borrowing. Results by Nielsen also show that more than 66 per cent of consumers globally are willing to rent things from and to others.
With recent inflation and signs of economic downturn, Peerby expects that the willingness to save and earn by sharing will only increase.
