Venture Capital: Consumer Tech Subscription Platform Grover Raises $330M In Series C Funding
The amount raised comprised $110M of equity and $220M debt.
Berlin-based Grover, an online platform that offers tech products for monthly rental subscriptions, has nabbed a massive $330 million Series C round. Of this $110 million came in the form of equity with Energy Impact Partners as lead investor. Fasanara Capital put in $220 million in the form of debt financing. (Crunchbase)
Grover addresses the circular economy and rentals are a sustainable and affordable method to satisfy the need for a gadget. This reduces the amount of electronic waste and is therefore better for the environment. It is therefore no surprise that Energy Impact Partners, which backs sustainable startups, is on board the current investment.
Rising trend of “rent-not-buy”
These days the younger generation are less attached to material things and have a use-and-throw kind of mentality. As a result, renting rather than owning, is the preferred route to obtaining a tech device such as a phone, laptop or TV.
And it works out cheaper according to CEO Michael Cassau – a month’s rental for a device is typically about 3-4% of item’s total purchase price.
Grover’s platform currently has 2 million registered users, 500k active subscribers and 250k active customers, who are mainly aged 18-34 years.
Its ARR for the past 12 months is more than double that of 2020 levels.
Use of funds
Grover will use the money for expanding the US operation and hiring there. It also intends to boost its product range and make a foray into embedded finance. There are plans to grow the subscriber base in its current markets – Germany, Austria, Spain, Netherland
Related Story: Back Market, Which Refurbishes Devices, Nabs $335M
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