Europe’s leading consumer-tech subscription platform, Grover, has raised over €303 million in a combination of equity and debt funding, at a valuation of over $1 billion. It consolidates its position as a pioneer of the circular economy in Europe.
The funding round was led by Energy Impact Partners, who were joined amongst others by Co-Investor Partners, Korelya Capital, Mirae Asset-LG Electronics New Growth Fund, as well as existing investors Viola Fintech, Assurant and coparion, as well as debt financing from Fasanara Capital. Media funds German Media Pool and SevenVentures also joined the round.
Founded in 2015 by Michael Cassau, Grover’s mission is to create the most innovative ways for everyone to get the tech they want, and in a way that mitigates harm, to the planet. Michael featured on our podcast at the start of this year to tell us more about the company’s vision and commitment to sustainability.
With Grover, subscribers get access to a wide range of over 3,000 tech products, including smartphones, laptops, virtual reality (VR) gear, wearables and smart home appliances on a flexible monthly rental basis. Grover’s service allows its users to keep, switch, buy, or return products depending on their individual needs and budget.
Michael Cassau, Grover’s Founder and CEO, explained: “With Grover we are building the global leader in consumer-tech subscriptions. The tech rental movement is a major worldwide societal shift, one that will transform how we access and use technology to be more flexible and sustainable. We see players from all sides of the market getting ready to join this phenomenal new market segment with extraordinary growth and profit opportunities ahead. We are proud to be the leading pioneer in this new $100 billion+ market. We will work very hard to leverage our frontrunner position and are excited to welcome all our new investors. Our joint goal is to simplify access to consumer tech and to bridge the tech gap for people all around the world.”
In the digital world, having access to top-notch tech is crucial. With increasing costs and increasing competition, there’s no doubt that a gap has emerged between those who can afford the latest tech and those who can’t. At the same time, tech is contributing to piling e-waste which is polluting the planet. Through reenvisioning the use of tech through a circular economy lens, Grover is able to change the game – making tech more accessible and the environment healthier.
This massive funding boost comes after a bumper year for the Berlin-based startup. Over the past year, Grover launched in the US, entered the embedded finance world with the Grover Card, and, saw ARR more than double from 2020. And, in June last year, the innovators picked up a massive €847 million. The company has over 450 employees today, with plans to continue growing the team in all markets.
As a first-mover in the market, Grover’s rapid growth is based on a strategy that capitalizes on growing consumer demand for affordable and sustainable ways to use tech. The subscription platform is accelerating a shift towards access over ownership, and will ultimately realize a circular economy for consumer electronics – keeping e-waste out of landfills and valuable materials in circulation. Grover’s products are returned, refurbished and recirculated until the end of their usable life. The average product will be circulated to at least four different users over several years. The record-holding product is a GoPro that has been circulated 27 times!
Nazo Moosa, Managing Partner at Energy Impact Partners said: “Grover has succeeded in pioneering the subscription economy for consumer electronics, a move that is critically important as we build a net zero world. The intersection of society’s linear consumption habits and climate change is an important focus area for EIP, which closed its latest flagship fund at one billion dollars last year. We believe Grover will reinvent society’s relationship with consumer tech, and as a result allow us to continue using the products we need while minimizing harm to our planet. Our investment in Grover is part of a mission to help scale start-ups from all over the world who have the ability to advance the transition to a more sustainable future, and we look forward to working closely with Grover as they move into this next exciting phase.”
With the new funding, Grover will accelerate its mission to democratize access to consumer tech, bringing the circular economy for electronics to new countries, and growing subscribers in existing markets – Germany, Austria, Spain, the Netherlands and the USA. Having opened a base in Miami in 2021, the US is an important focus for Grover this year.
