Tech renting takes off as German lending platform Grover raises €60m
The profitable fintech benefitted from the WFH boom and tech shortages in 2020.
After completing one of 2020’s biggest European fintech debt funding rounds, German tech rental platform Grover is back today with an additional €60m Series B equity round.
Unsurprisingly Grover, which lets anyone rent gear from games consoles to digital cameras, saw a bumper 2020 with revenues up 2.5x year-on-year at €37m, putting the startup on track for €60m in annual recurring revenue and profitable at an EBITDA-level.
Last year saw huge shortages in everything from webcams to laptops as the world moved to a work from home model, and the current global chip shortages are continuing to limit supply and drive people to alternatives.
Grover’s CEO and founder Michael Cassau said the cash, of which €45m is equity and €15m is venture debt, will go towards international expansion in Spain and the US (along with developing its core markets Germany, Austria and the Netherlands.
“Now more than ever, consumers value convenience, flexibility and sustainability when they shop for and use products,” said Cassau.
“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.”
Along with expansion, Grover is also planning on launching a flat-rate ‘tech subscription’ service and developing its own offering as an embedded financial service.
“It enables us to double down on creating an unparalleled customer experience for our subscribers, and to push the boundaries of the most innovative ways for people and businesses to access and enjoy technology,” added Cassau.