Grover, the Berlin-based start-up that offers pay-as-you-go subscriptions to the latest consumer technology, including e-scooters, has signed a new finance agreement to cover assets and replenish existing debt Facility with Varengold Bank totaling € 250 million.
The additional capital will stimulate the next phase of growth when the German company is active in the area of scale-up. Specifically, it is an addition to an existing credit facility of EUR 55 million with Varengold through a non-named lender, which will be used to expand Grover's product range and to acquire assets. Buying the latest equipment and then renting it out is after all quite capital intensive.
Grover, who operates in Germany and Austria and will open additional markets in 2020, positions itself as part of the so-called "circular economy" people rent things instead of owning them directly. The idea is that it offers a more sustainable form of consumption, since items have multiple owners during their lifespan and can be cheaper, depending on your preference for the latest consumer electronics.
Grover offers subscriptions through its own website and also works with major electronics retailers. This essentially turns it into a form of cash financing, in which consumers can rent the property they are considering and later buy it directly.
The company states that it is currently represented on the online channels of eight leading European electronics retailers and more than 500 brick-and-mortar stores across Germany. This market launch strategy is expected to continue in 202.
Grover also plans to expand its B2B offering to meet continued business customer demand. It will also further develop its electric mobility category in order to make future micromobility vehicles flexibly accessible to consumers every month.