41 Million EUR to Fuel Growth Phase for Grover

The circular economy has breached the home sharing and ride sharing industries, and Grover pushes the concept to another industry. Grover offers its customers a monthly subscription whereby customers can rent, buy, and return the latest technology. The tech rental startup closed its pre-Series B funding round October 1. Augmentum Fintech plc led the round, which yielded 11 million EUR from equity investors and 30 million EUR in debt capital. This funding round will pave the way to its international expansion. 

Debt Financing – Why use it? 

Grover has had what looks like a peculiar funding history. With what appears to be 8 funding rounds, it is only technically entering its Series B round. Additionally, it has participated in 4 debt funding rounds. A debt funding round is when a company receives money from an investor with the agreement to pay it back with interest. 

According to Mesh Lakhani of Mark 2 Capital, a company could benefit from debt financing if it is focused on lending or financing. The debt round gives the company access to ‘product’ without funneling all of its equity financing into lending. Grover is considered a financing company for the circular economy, so it’s possible this is one reason the company has opted for debt financing. 

The other reason Lakhani cites as a major reason for debt financing is that the company is already growing at a healthy rate. Rather than dilute the value the company has built so far, it can raise money to sustain growth until it is ready for the next big funding round. This seems quite relevant to Grover’s path since it already has partnerships with leading German electronic retailers such as MediaMarktSaturn, Gravis, Conrad, and Tchibo. 

Circular Sustainability

Grover has a unique take on the consumer hardware industry. It provides access to over 2,000 tech products include smartphones, laptops, virtual reality gear and wearables. This model taps into demand from consumers who are excited to use the latest version of emerging technologies. 

Additionally, this approach embraces the circular economy, which is a sustainable idea in which businesses account for the entire product life cycle. With an increasing demand for consumer technology and a decreasing capacity for our planet to handle waste, reusing and renting hardware is popular with consumers and environmentally responsible. 

This funding will pave the way for the company’s growth. 

Michael Cassau, CEO & Founder of Grover, says: “I am delighted with the confidence of our investment partners in Grover’s long-term business success. Our total funding amount is now in the three-digit million range, solidifying Grover’s position as a strong player in the German start-up ecosystem. This fresh funding will enable us to drive service and product innovation and bring Grover’s future-oriented rental service for consumer electronics to new and international customers beyond the German market.”