Grover secures $1BN to democratise consumer tech
Circularity Capital portfolio company Grover, Europe’s market leader in consumer tech subscriptions, has secured more than $1billion in equity and asset-backed financing to democratise access to tech, while simultaneously tackling the world’s prolific e-waste problem.
In what is considered the largest ever financing round for a start-up in the circular economy space, Grover will use the capital to accelerate its continued growth and global expansion in both new and existing markets. The finance will also allow Grover to increase product circulations from 475,000 (to date) to 5 million (by 2024).
The round comprises a $1bn asset-backed facility, alongside an extension of its Series B funding round from $71m to $100m. The debt funding will be provided to a special purpose entity, which will acquire and own the products Grover’s customers subscribe to. This structure separates ownership of the assets from Grover’s subscription platform, allowing the company to focus on product development, customer acquisition and international expansion.
Responding to surging customer demand, the company nearly doubled its subscription base during the first half of 2021, providing access to almost 250,000 tech products.
Grover enables individuals and businesses to rent technology on a monthly basis, removing the need for upfront purchase costs and providing more flexibility than a financing plan. The subscription service provides unbeatable access to tech by providing access to more than 3,000 products and offering complete control of the subscription length to maximise affordability. 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.
Returned products are refurbished to an ‘as new’ condition and recirculated to make sure they stay in use and out of landfill. When the product reaches end of life, Grover’s circular supply chain ensures the materials are reused or recycled. Consumers also enjoy stress-free subscriptions, with 90 per cent of the cost of any damage covered as standard.
Michael Cassau, founder and CEO of Grover, said: “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.
“We’re capitalising on a major shift in consumer preferences to bring more tech to more people, while reversing the alarming e-waste trend that has such severe environmental consequences. 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.”
Grover is already active in Germany, Austria, the Netherlands and Spain, and plans to expand into further markets in Q4 2021. For more information about Grover, or its flexible technology subscription solution, visit www.grover.com/de-en.