Grover, the Berlin-based company creating a circular economy for consumer electronics, has increased an existing €55-million debt facility with Varengold Bank to a total of €250 million. The supporting debt investor was not disclosed. The transaction brings Grover’s total funding volume to roughly €300 million.
The Grover rental model gives consumers flexible and affordable access to a variety of technology and devices, while reducing e-waste. Last year, the company recirculated nearly 100,000 devices. The consumers like it, too: the company recorded a 200 percent growth rate in active subscriptions and cash revenue in 2019.
The funding will go to three main business initiatives. First, Grover will expand its product range and purchase assets to meet growing demand for its service in Germany, Austria and other markets to be launched in 2020. Second, the business will further develop its e-mobility category, hopping on the micro-mobility bandwagon, making vehicles available on a flexible, monthly basis. Third, the company will expand and support its B2B offering; in the past year, 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.”