Grover is a German B2C startup company that offers electronics rentals through a monthly subscription. Founded in 2015 by Michael Cassau, the subscription-based business model allows customers to rent electronics for a certain period of time and either return or extend the rental period or purchase the item outright.
With a minimum rental period of one month, the B2C (business-to-consumer) startup company features more than 2,000 products across 11 different categories like computers, phones, tablets, cameras, drones, wearable devices, and more. The business features products from brands like Apple, Microsoft, HP, GoPro, Sony, Samsung, and many others. In addition, the B2C startup company claims that if a product is damaged, Grover will cover 90% of the damage cost. Furthermore, the business claims it has more than 800,000 customers.
Through Grover Business, a B2B electronics subscription model for companies, the electronics are available for rent at certain German brick-and-mortar retail locations like MediaMarkt, SATURN, GRAVIS, and Conrad.
Crunchbase data reports the company has raised €282 million (roughly $335 million) in numerous investment rounds featuring investors like Varengold Bank, Circularity Capital, Augmentum Fintech, and others.
$71 Million for Grover
Grover announced in a press release the B2C startup company raised about $71 million in a Series B financing round that featured new investors like JMS Capital-Everglen, Viola Fintech, and Assurant Ventures. Angel investors in Europe and North America and previous investors also participated. Of the capital raised, €45 million (roughly $53.5 million) comes from equity investors, and the remaining €15 million (about $17.8 million) from venture debt financing.
The subscription company’s press release details how the B2C startup closed out a successful year last year with 2.5 times year-over-year (YOY) growth, €37 million (nearly $44 million) in net revenues for the fiscal year, and more than 4,000 metric tons (8.8 million pounds) of CO2 saved due to device recirculation.
With the new funding, the business plans to fuel the next phase of growth for the B2C startup through increasing market penetration, advancing product innovation, tripling subscriptions to 450,000 by the end of 2021, and continuing international expansion in Austria, the Netherlands, Spain, and the United States (US).
Michael Cassau, CEO and founder of the electronics subscription business, said in a statement, “Now more than ever, consumers value convenience, flexibility and sustainability when they shop for and use products. This is especially true when it comes to technology and all of the possibilities that it has to offer — whether that’s productivity, fun, or staying in touch with our loved ones. The fresh funding allows us to bring these possibilities to even more people across the world...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 €1 trillion [$1.2 trillion] global market.”
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.