Grover, a leading consumer tech subscription startup landed $330 million after a funding round that boosted its valuation to unicorn status at over US$1 billion.
The Berlin-based company, which rents out gadgets like smartphones and laptops via subscription plans, has announced in a statement Thursday that secured the additional investment in a mix of stock and debt financing from several investors.
The $110 million equity portion of the Series C funding round was led by Energy Impact Partners, a sustainability-focused investment firm, with Korelya Capital and Mirae Asset-LG Electronics New Growth Fund joining a number of previous investors Viola Fintech, Assurant, and Coparion.
The startup which pins profitability on the circular economy also received $220 million in debt financing from Fasanara Capital. Media funds German Media Pool and SevenVentures also joined the round.
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 expanding in North America.
The company has recently opened another base in Miami, Florida as it sees huge potential for growth and market expansion in the U.S. It has also a growing number of subscribers in Germany, Austria, Spain, and the Netherlands.
Michael Cassau, Grover’s Founder and CEO said:
“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 past year, the German-born startup launched in the US and entered the embedded finance world with the Grover Card and saw annual revenues more than double from 2020. The company now has over 450 employees today, with plans to continue growing in all markets.
“ 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,” Nazo Moosa, Managing Partner at Energy Impact Partners said.
Banking on a strategy that capitalizes on growing consumer demand for affordable and sustainable ways to use tech, the subscription platform is now accelerating a shift towards access over ownership towards a circular economy for consumer electronics and in keeping e-waste out of landfills and valuable materials in circulation. After each subscription of a gadget like a smartphone or a laptop, Grover’s products are returned, refurbished, and recirculated until the end of their usable life.
According to the company, on average, a 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. The company currently has 500,000 items in its inventory, covering the entire consumer electronics spectrum.
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