Germany-based Grover, a company that enables people to subscribe to tech products monthly instead of buying them, raised over US$ 1 billion (around €847 million) on 28 July 2021.
Investment: The funding round consists of a US$ 1 billion asset-backed facility from London-based Fasanara Capital, and an extension of its Series B funding round from around €60 million to €84.5 million. The debt funding will be provided to a special purpose entity that will acquire and own the products Grover’s customers subscribe to, thus separating the ownership of the assets from Grover’s subscription platform.
Purpose of the funding: The funds raised will be used by the company to democratize access to tech while tackling the world’s ‘e-waste’ problem.
Founded in 2015 by Michael Cassau, Grover is a product-as-a-service company that gives the freedom of renting by bringing the access economy to the consumer electronics market by offering a monthly subscription model. It allows private customers and businesses to get access to a wide range of over 3000 tech products such as smartphones, laptops, virtual reality (VR) gear and wearables.
Grover removes the need for the upfront capital expense and allows for more flexibility than an outright purchase or 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. When the product reaches the end of its life, Grover ensures that the materials are reused or recycled.
What the CEO has to say: “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. 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.” — Michael Cassau, CEO of Grover.
What the investors have to say: “Grover has gone from strength to strength and is well on its way to dominating the $280 billion 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 a testament to the world-class founder-led management team, and we look forward to supporting them at this very exciting point in the journey.” — Francesco Filia, CEO of Fasanara Capital.
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