The Berlin-based startup Grover has drawn €250 million in funding, to expand its tech subscription service in Germany and into the rest of Europe, according to Tech.eu.
Founded in 2015, Grover offers a subscription service allowing users access to over 2,000 tech devices such as laptops, smartphones, virtual reality equipment, micromobility vehicles, and wearable tech. In the vein of Netflix, Spotify, and other subscription services, Grover allows flexible access to a wide variety of products without requiring users to commit to a purchase. Users can choose to hold onto, return, or buy devices based on their needs at a given time.
Allowing as-needed access by a series of users also reduces e-waste and allows devices to be used more efficiently throughout their life cycle.
Last year, almost 100,000 devices were recirculated through Grover, which also saw an almost 200 percent growth rate in active subscriptions and revenue. For now, Grover operates only in Germany and Austria, but it’s planning an expansion into the rest of Europe.
In an asset-backed financing deal, Grover has now increased a €55 million debt facility with Varengold bank up to €250 million, making them one of the most well-funded startups in Germany.
The new funding will help expand Grover’s product range and services, to meet growing demand in Germany and Austria, and to launch into other European markets later this year. It will also expand its e-mobility offerings, launched early last year.
Grover allows users to subscribe directly on its website, but they also partner with other retailers to give customers the option to rent and try out a device instead of buying it right away. The funding will enable further development of these business to business services, where Grover is also seeing rising demand. The company now works with eight of Europe’s top electronics retailers online, and in over 500 brick and mortar stores throughout Germany.
According to founder and CEO Michael Cassau:
“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.”