Subscription-based consumer tech rental platform Grover has secured over $1 billion in equity and asset-backed financing. The fresh funding is expected to accelerate growth and enter new markets. The Berlin-based platform is projecting to raise circulations from a current number of 475,000 to a healthy 5 million by 2024.
Founded in 2015 by Michael Cassau, Grover capitalises on the trend of subscription-based services, allowing consumers to rent technology on a monthly basis. In doing so, the company is also taking on the global problem of “e-waste” by recirculating items via a refurbishing programme.
The company has experienced year-over-year growth of 2.5x and net revenues of €37 million for the fiscal year. Based on these figures, Grover reports that 4,000 metric tonnes of CO2 were saved due to device recirculation, and 1,400 tonnes of e-waste were spared from landfills.
Grover’s financing round consists of a $1 billion asset-backed facility from Fasanara Capital, and a $29 million extension of its Series B round, up from $71 million to $100 million. The debt funding will be provided to a special purpose entity that will acquire and own the products Grover’s customers subscribe to. In doing so, Grover is separating the ownership of the assets from the subscription platform itself.
“Grover has gone from strength to strength and is well on its way to dominating the $280 billion addressable tech subscription market. Consumer preferences are quickly steering towards a subscription economy for electronic products, and as Europe’s fastest growing company in that space, Grover is poised for significant growth as a result,” commented Fasanara Capital CEO Francesco Filia.