By Steve O’Hear
Grover, the Berlin-based startup that offers “pay-as-you-go” subscriptions to the latest consumer tech as an alternative to owning products outright, has raised €37 million in funding.
The Series A round is led by Circularity Capital LLP — a VC that specialises in the so-called “circular economy” — with participation from fintech investor Coparion, Samsung NEXT, and Varengold Bank. Existing investors, including Commerzbank’s Main Incubator, also followed on.
Noteworthy, the funding consists of €12 million in equity and a new €25 million debt facility. Building an inventory of new tech products to rent is quite capital insensitive, after all.
Targeting Germany only, for now (after withdrawing from the U.K. and pausing a soft launch in the U.S.), Grover wants to be something akin to Netflix for gadgets. It offers individual tech products by monthly, three-monthly or yearly subscription, or via its newly launched “Grover Mix” subscription, which has a fixed monthly price and lets you switch item at any time.
In addition, you are afforded some upside protection, should you wish to purchase the item after renting it first. You’re given the option to buy products with 30 percent of your subscription payments to date being deducted from the recommended retail price. For …read more
Source: Tech Crunch