Image: Grover
The Berlin start-up plans to expand its presence in existing European markets and enter more countries, including the US.
Grover, the subscription service for electronics, has closed a €60m Series B round of equity and debt funding.
The Berlin-based company allows people to rent out electronics and tech goods on a monthly basis. It said it saw a spike in interest from users last year as people sought more flexible ways to access the tech products that they need. According to Grover, it reached €60m in annual recurring revenue in 2020.
The company said that fresh funding will be used expand its presence in existing markets of Germany, Austria and the Netherlands, and enter new markets with Spain and the US on the agenda. It will also expand its subscription tiers and models for consumers and businesses.
It aims to triple its subscriber numbers by the end of the year to 450,000.
The round is a mix of €45m in equity funding and €15m in debt financing. The company has raised financing of almost €350m to date, with a €250m funding deal at the start of 2020.
The latest equity investment was led by private equity firm JMS Capital-Everglen with participation from Viola Fintech and Assurant Ventures. Previous backers including Coparion, Augmentum Fintech, Circularity Capital, Seedcamp and Samsung Next also participated. The debt funding came from Kreos Capital.
With Samsung as an investor in the company, Grover has launched subscription services for Samsung smartphones. Users can also access a range of computers, tablets, wearables, cameras, gaming devices, home entertainment equipment and more.
Founder and chief executive Michael Cassau said that Grover is addressing a demand among consumers for flexible and convenient access to technology rather than through outright purchasing.
“The fresh funding allows us to bring these possibilities to even more people across the world. It enables us to double down on creating an unparalleled customer experience for our subscribers, and to push the boundaries of the most innovative ways for people and businesses to access and enjoy technology,” Cassau said.
“The strong support from our investors confirms not only the important value our service brings to people, but also Grover’s vast growth potential. We’re still just scratching the surface of a €1trn global market.”
Grover recently appointed Michael Kostadinovich, formerly of Better.com, as its new chief technology officer.
