Berlin-based tech subscription startup Grover announced today that it has closed a new asset-backed financing deal, topping up an existing facility with Varengold Bank to a total of €250 million. The additional funding will fuel the next growth phase for the Circular Economy pioneer.
The new asset-backed funding deal is an increase of an existing €55-million debt facility with Varengold Bank to a total of €250 million, via a supporting debt investor. The transaction brings Grover’s total funding volume to roughly €300 million. The fresh capital reinforces Grover’s position as the European market leader in Consumer Electronics rentals and as a pioneer in the advancement of a Circular Economy for electronics.
Grover‘s business model of renting out Consumer Electronics devices to several customers across their life cycle allows the company to provide flexible and affordable access to a variety of tech products like smartphones and tablets, while simultaneously reducing e-waste through recirculation. Last year, the company recirculated nearly 100.000 devices. Through its online channel and its integration with leading electronics retailers, Grover creates its own ecosystem and provides a platform for the €1.2 trillion global Consumer Electronics industry to substantially reduce the 50 million tons of toxic e-waste generated annually. Grover’s unique value proposition has proven popular with customers: In 2019 alone, the company recorded a 200 percent growth rate in active subscriptions and cash revenue.
The additional funding will be used to expand Grover’s product range and will go toward the purchasing of assets. This allows Grover to respond to growing demand for its service in Germany, Austria and other markets to be launched in 2020. Importantly, Grover will use the capital to further develop its e-mobility category, with the aim of making future-oriented micro-mobility vehicles accessible to the broad public on a flexible, monthly basis.
The funding also supports the expansion of Grover’s cooperation with major electronics retailers. The company is currently present in the online-channels of eight leading European electronics retailers and in more than 500 brick-and-mortar stores across Germany. In addition, the company will expand its B2B offering, in order to serve the rapidly rising demand from its business customers. In the past year alone, Grover’s B2B segment grew nearly five-fold.
Michael Cassau, founder and CEO of Grover, says: “This asset-backed financing deal is essential for the expansion of Grover’s business. With Varengold facilitating this financing round, we have a banking partner by our side who firmly believes in our business model and supports our growth. Securing this fresh funding in the three-digit million range proves once again that Grover’s disruptive tech rental model has enormous future potential – for our business partners and for our growing customer base.”
Lukas Diehl, Head of Marketplace Banking at Varengold Bank, adds: “It is important for us to build long-term partnerships by continuously adding value with a portfolio of attractive banking services for customers like Grover. To do this, we sometimes draw on our network of institutional investors. We are very proud to have found a further debt investor to collaborate with to ensure Grover’s long-term growth.”
Grover was advised on the transaction by Baker & McKenzie International, Varengold was advised by Hogan Lovells, LLP.
Main image picture credits: Grover
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