Berlin-based startup Grover, which offers pay-as-you-go subscriptions as an alternative to technology product ownership, has raised EUR37 million in Series A funding, one of the largest Series A rounds in Europe.
The round was led by circular economy specialist Circularity Capital LLP, and supported by fintech investor Coparion, Samsung NEXT and Varengold Bank as well as existing investors including Commerzbank’s Main Incubator and June Fund. The round consists of EUR12 million from equity investors and EUR25 million in debt capital. The new EUR25 million debt facility replaces the previous facilities, representing the total debt capital base for asset investment.
The new capital will be used to expand its market leadership in Germany and fuel its international expansion to continue its current revenue growth rate of 20 per cent per month. The capital will also fund new products such as “GroverMix,” a flat rate model which offers maximum flexibility for customers, and “Startupsget Grover” the newly created B2B offering.
Through cooperation with Europe’s largest electronics retailers, Grover has established itself as a leading player in the consumer electronics market. The fundraise builds on a successful 2017 for Grover, whereby the company achieved tenfold sales growth, as well as partnered with renowned businesses such as MediaMarkt, Saturn, Gravis, Conrad and Tchibo.
Grover is also redefining the way consumers relate to products by promoting an alternative to buying and owning, which maximises usage and minimises waste. The product that you return today will be used by someone tomorrow.
Grover was recently admitted to the CE100 group of companies selected by the Ellen MacArthur Foundation, which includes Apple, Microsoft, Google, eBay and Walmart, for its contribution to more sustainable consumer behaviour.
Michael Cassau, Founder and CEO of Grover, says: “The new financing is a big step for Grover on our way to reshaping the way consumers access tech products. In addition to expansion into new markets, the funding will allow us to offer new and innovative usage models to our customers.”
David Mowat, Partner at Circularity Capital, adds: “Grover has developed a highly scalable, commercially proven platform, has a strong management team and has clearly demonstrated its ability to deliver value for its rapidly growing subscriber base and retailer partners. The investment in Grover is also highly aligned with Circularity’s focus on using the circular economy to identify opportunities to drive financial value creation in parallel with positive environmental and societal impact. We believe that Grover will be incredibly successful and will have a lasting impact on the way consumers access and interact with technology.”
Nick Nigam, Investor at Samsung NEXT, says: “At Samsung NEXT, we are committed to simplifying and improving user experiences through software. Grover’s dedicated platform for OEMs and retailers, which offers subscriptions at the checkout, is an excellent example of a venture driving new behaviours for consumers, as well as enabling new ways for companies to have conversations with them.”
