German rental startup secures €195m funding facility

By John Reynolds on 20th January 2020

Digital Banking

Grover said the facility will be used to expand product range and buy assets.

  German rental startup secures €195m funding facility
Image source: Image provided by Grover

German technology rental platform Grover has secured an extra €195m (£167m) new debt facility, as it looks to expand its product range and buy assets.

The asset-backed funding deal with Varengold Bank tops up an existing €55m (£470) with the German bank meaning it has €250m (£213m) headroom with the bank and total funding of around €300m (£256m).

The Berlin-based startup specialises in flexible, technology rentals in cameras, computers and games.

Grover is trying to disrupt the consumer electronics market with its rental subscription offer. Customers and businesses rent products, starting at one month.

Grover distributes both through its own website and through retail partners.

It currently has a customer base of over 300,000 and has relationships with a number of major electronics retailers.

Grover said the new funding will be used to further its product range and buy assets. In particular, it will use the funds to develop its e-mobile category, like electric scooters, with the aim of making micro-mobility vehicles accessible to the public on a flexible, monthly basis.

Grover currently has a presence in the online-channels of eight European electronics retailers and in more than 500 bricks and mortar stores in Germany.

Grover said it will also use the funding to expand its B2B offering.

Michael Cassau, founder and CEO of Grover, said: “This asset-backed financing deal is essential for the expansion of Grover’s business. With Varengold facilitating this financing round, we have a banking partner by our side who firmly believes in our business model and supports our growth.”

“Securing this fresh funding in the three-digit million range proves once again that Grover’s disruptive tech rental model has enormous future potential – for our business partners and for our growing customer base.”

Lukas Diehl, Head of Marketplace Banking at Varengold Bank, added: “It is important for us to build long-term partnerships by continuously adding value with a portfolio of attractive banking services for customers like Grover.”

“To do this, we sometimes draw on our network of institutional investors. We are very proud to have found a further debt investor to collaborate with to ensure Grover's long-term growth.”

 

 

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