Grover, a German circular economy start-up, has raised $1 billion in a mix of equity and asset-based financing to fuel its growth.
The Berlin-based start-up provides access to consumer electronics on a subscription basis for customers rather than those customers outright purchasing products.
According to the company this alternative to ownership or financing plans helps in making electronics more affordable and cuts down on electronic waste. Returned products are refurbished and released back on Grover’s subscription platform or recycled if they are beyond re-use.
The fresh round of financing comes from London asset management firm Fasanara Capital and also extends the start-up’s previously disclosed Series B round of $71 million to $100 million. Previous backers include Samsung Next and JMS Capital-Everglen.
It will establish a new special purpose entity that will acquire the products that will be leased out to customers through subscriptions. This will allow the main Grover entity to focus on product development, customer acquisition and international expansion, it said.
Grover plans to double down in its existing markets of Germany, Austria, the Netherlands and Spain and enter more new markets by the end of the year.
Chief executive Michael Cassau said the company has “circulated” 475,000 products to date while the company doubled its subscriber numbers in the first half of this year.
“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,” Cassau said.
“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 capitalizing 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.”
According to the UN’s Global E-waste Monitor report, there were 53.6 million metric tons of e-waste generated in 2019, a number that is growing annually.
“Consumer preferences are quickly steering towards a subscription economy for electronic products, and as Europe’s fastest growing company in that space, Grover is poised for significant growth as a result,” Francesco Filia, CEO of Fasanara Capital, said.
“The growth Grover has seen over the past 12 months is testament to the world-class founder-led management team, and we look forward to supporting them at this very exciting point in the journey.”
This article was written by Jonathan Keane from Forbes and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to [email protected]