The Berlin-based startup Grover, which offers pay-as-you-go subscriptions as an alternative to technology product ownership, has raised €37 million in Series A funding – one of the largest Series A rounds in Europe this year. The round was led by circular economy specialist Circularity Capital, and supported by Coparion, Samsung NEXT and Varengold Bank as well as existing investors. The round consists of €12 million from equity investors and €25 million in debt capital. The new €25 million debt facility replaces the previous facilities, representing the total debt capital base for asset investment.
Grover, which we mentioned as one of “10 German startups to watch in 2017“, enables people to subscribe to tech products monthly instead of buying them. Founded in 2015, Grover today is one of the fastest growing startups in Germany.
The fresh capital will be used to expand Grover’s market leadership in Germany and fuel its international expansion to continue its current revenue growth rate of 20% per month. In addition, the young company will invest in new products such as “Grover Mix,” a flat rate model which offers maximum flexibility for customers, and “Startups get Grover” the newly created B2B offering.
Through cooperation with Europe’s largest electronics retailers, Grover has established itself as a leading player in the consumer electronics market. The fundraise builds on a successful 2017 for Grover, whereby the company achieved tenfold sales growth, as well as partnered with renowned businesses such as MediaMarkt, Saturn, Gravis, Conrad and Tchibo. Grover is also redefining the way consumers relate to products by promoting an alternative to buying and owning, which maximises usage and minimises waste. The product that you return today will be used by someone tomorrow.
Grover was recently admitted to the CE100 group of companies selected by the Ellen MacArthur Foundation, which includes Apple, Microsoft, Google, eBay and Walmart, for its contribution to more sustainable consumer behaviour.
Michael Cassau, Founder and CEO of Grover, said: “The new financing is a big step for Grover on our way to reshaping the way consumers access tech products. In addition to expansion into new markets, the funding will allow us to offer new and innovative usage models to our customers.”
David Mowat, Partner at Circularity Capital, added: “Grover has developed a highly scalable, commercially proven platform, has a strong management team and has clearly demonstrated its ability to deliver value for its rapidly growing subscriber base and retailer partners. The investment in Grover is also highly aligned with Circularity’s focus on using the circular economy to identify opportunities to drive financial value creation in parallel with positive environmental and societal impact. We believe that Grover will be incredibly successful and will have a lasting impact on the way consumers access and interact with technology.”