Berlin-based consumer tech subscription startup Grover enables people to subscribe to tech products on a monthly basis instead of buying them. Today, the company has announced that it has secured over $1billion (nearly £72 million) in the largest funding round in the circular economy space.
To increase circulations by 2024
The equity and asset-backed financing came from London-based Fasanara Capital as an extension of its Series B funding round it raised earlier this year. The debt funding will let it acquire and own the products Grover’s customers subscribe to. This structure separates ownership of the assets from Grover’s subscription platform, thereby allowing the company to focus on product development, customer acquisition and international expansion.
Grover will use the fresh capital to accelerate growth and global expansion in new and existing markets. The finance will allow Grover to increase circulations from 475,000 to date to 5 million, which will avoid 24,000 tonnes of e-waste by 2024.
Responding to surging customer demand, the company nearly doubled its subscription base during the first half of the year and is already offering access to close to 250,000 tech products.
Grover’s founder and CEO, Michael Cassau said: “Consumer electronics are fundamental to modern life and we believe that everyone should have access to the tech they need at prices they can afford. However, the linear nature of society’s consumption over the years has led to e-waste becoming the fastest growing waste stream in the world. We’re capitalizing on a major shift in consumer preferences to bring more tech to more people, while reversing the alarming e-waste trend that has such severe environmental consequences. So far, we’ve circulated 475,000 products, equivalent to 1,400 tonnes of e-waste. This latest round of financing is a huge vote of confidence from our investors and will allow us to realise our goal of becoming the world’s leading sustainable electronics subscription brand.”
Francesco Filia, CEO of Fasanara Capital said: “Grover has gone from strength to strength and is well on its way to dominating the $280bn 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. The growth Grover has seen over the past 12 months is testament to the world-class founder-led management team, and we look forward to supporting them at this very exciting point in the journey.”
No more tech subscriptions!
Grover founded by Michael Cassau in 2015 operates with the mission to create the most innovative ways for everyone to get the tech they want. 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 products on a fixed monthly rental basis. Eventually, it removes the need for upfront capital and brings in more flexibility with its financing plan.
At the end of the original subscription period, the customer can either buy the product, send it back or continue on a month-to-month basis. Returned products are refurbished to an ‘as new’ condition and recirculated to make sure they stay in use and out of landfill. When the product reaches the end of its life, Grover’s circular supply chain ensures the materials are reused or recycled. Consumers also enjoy stress-free subscriptions, with 90 percent of the cost of any damage covered as standard.
Already, Grover already active in Germany, Austria, the Netherlands and Spain, and plans to launch further markets in Q4 2021.