Image: Grover
The Berlin-based company said its customer base has grown by more than 50pc since the start of the year and it now plans to expand further in European markets.
German start-up Grover has secured €270m in asset-backed funding to meet the growing demand for tech rentals in Europe.
The funding came through a debt financing facility with international asset manager M&G. Grover said this will help the company expand its product inventory to meet the needs of customers in existing and new European markets.
The Berlin-based company rents out electronics products to customers on a monthly subscription basis in order to promote a circular economy and reduce e-waste. Products include phones, laptops, cameras, games consoles and more.
Grover said its customer base has grown by more than 50pc since the beginning of the year, with strong demand in the US, western Europe and the B2B market.
The company was founded by CEO Michael Cassau in 2015. Cassau said he has seen the tech rental market gain “further momentum” in recent months amid increased costs of living.
“Grover allows people to have access to more tech without getting into debt,” he added. “Everyone now needs a substantial tech budget to provide basic access to the digital world.
“With persistent inflation, this is a demand that many cannot afford, and it’s essential we make sure access to tech is equitable.”
Last year, Grover raised more than $1bn in a mix of asset-based and equity financing to expand its consumer tech lending services. This included an increase to its Series B funding round from $71m to $100m.
According to the UN, more than 50m tonnes of e-waste is produced globally each year, of which only around 20pc is recycled. Grover said its devices are, on average, used by four different users over several years.
Cassau said the M&G deal will help Grover develop “an impact metric” to measure effect its business has through “lengthening the lifetime of devices and reducing e-waste”.
Other companies are jumping on the growth of environmentally conscious consumers in Europe, such as the second-hand tech marketplace Refurbed.
Less than a year after launching in Ireland in March 2021, Refurbed claimed to have furnished 1pc of all Irish households with refurbished technology.
10 things you need to know direct to your inbox every weekday. Sign up for the Daily Brief, Silicon Republic’s digest of essential sci-tech news.
