Berlin, Miami, 29 November 2021 - Grover, Europe’s leading tech subscription platform, today announced it has signed a $250m asset-backed facility with London-based Fasanara Capital, dedicated to the US market. The financing will allow Grover to accelerate growth in its US business, which has surpassed its subscriber targets since launching in September this year.
An increasingly popular method of funding for subscription-based businesses to remain ‘asset-light’, the facility is provided through a special purpose entity, which will acquire and own the devices customers subscribe to. Grover plans to use the funds to respond to increasing demand for the subscription service in the US. Capitalizing on an accelerating shift in consumer preferences towards sustainable consumption, the German born start-up has grown its user base to more than 1 million registered users in Europe, while the US is growing significantly ahead of plan.
Grover is democratising access to consumer tech while tackling the world’s prolific e-waste problem. Customers benefit from flexible monthly subscriptions to over 3000 new and used products, removing the need for upfront capital expense, and allowing for more flexibility than an outright purchase or financing plan.
Thomas Antonioli, Grover’s CFO said: “We are very proud of the major milestones we have achieved this year, which has made us the world’s leading sustainable electronics subscription platform. We’ve raised more than $1.3 billion in equity and asset-backed debt; we’ve launched our business in the US and most recently announced our first step into the embedded finance world with the Grover Card. We are excited about this funding deal for the US market, which will allow us to bring circular electronics to many more people, progressing our mission to reduce the 50m tonnes of electronic waste the world produces each year.”
The announcement follows the $1bn in asset-backed debt and equity financing Grover secured in July, and the launch of The Grover Card in partnership with Visa and Solarisbank in early November. The card offers a three percent return on everyday purchases which is turned into Grover Cash rewards, tracked and redeemed against tech subscriptions in the app.
Grover is Europe’s market leader in technology rentals, enabling people to subscribe to tech products monthly instead of buying them. Founded in 2015 by Michael Cassau, Grover’s mission is to create the most innovative ways for everyone – both private customers and businesses – 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 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. Rentals are available in Germany, Austria, the Netherlands, Spain and the US on GROVER.COM, as well as – in Germany – through Grover’s online and offline partner network, including Europe’s leading electronics retail group, MediaMarktSaturn. Grover is a pioneer in the advancement of the Circular Economy and the number of circulations has nearly been over 500,000 devices. Its business model of renting out tech products to several users across their life cycle allows maximum value to be extracted from each product and reduces e-waste. With a total financing volume of around €1.3bn, and currently around 400 employees, Grover is one of Germany’s best-funded scale-ups.