Grover tops up debt facility to €250M to scale its renting model for consumer electronics
Grover, the Berlin-based startup that offers “pay-as-you-go” subscriptions to the latest consumer tech, including e-scooters, has closed a new “asset-backed” financing deal, topping up an existing debt facility with Varengold Bank to a total of €250 million.
The additional capital will fuel the next phase of growth as the German company has entered scale-up territory. Specifically, it is an increase of an existing €55 million debt facility with Varengold, via an unnamed supporting debt investor, and will be used to expand Grover’s product range and for the purchasing of assets. Buying the latest gadgets to then rent them out is pretty capital intensive, after all.
Operating in Germany and Austria, with other markets to be launched in 2020, Grover pitches itself as part of the so-called “circular economy” whereby people rent things rather than outright own them. The idea is that it offers a more sustainable form of consumption, since items can have several owners during their lifespan, and can be more cost effective, depending on your penchant for the latest consumer electronics.