By Amelia Isaacs on Wednesday 28 September 2022
In the latest of a series of successful fundraises, the fintech has secured an asset-backed security from M&G to continue expanding its tech rental offering.
Berlin-based fintech Grover has raised another €270m in funding just five months after its Series C round catapulted it to unicorn status.
The tech-subscription platform has agreed the new debt financing facility with international asset manager M&G as it readies itself for the next phase of growth.
It plans to use the funds to expand its product inventory to meet the “rising demand” from customers in existing markets, including Germany, Spain and Austria, as well as new European markets.
According to the company, it has stopped the purchase of 134,000 new devices and saved 210 tonnes of e-waste from landfill with its subscription model.
“Grover is advancing the world to digital fluency so people will benefit from the experiences that the right technology in the right hands can deliver,” Grover founder and CEO Michael Cassau said.
“Grover allows people to have access to more tech without getting into debt.
The tech rental movement has gained more momentum as consumers look for “more flexible and sustainable solutions”, according to Cassau, amid the increasing costs of living.
Grover’s customer base has grown by more than 50 per cent since the start of the year, with particular demand in the US and Western Europe.
As inflation and the cost of living continue to rise, customers are turning to the rental platform to access tech without the large upfront costs.
“Everyone now needs a substantial tech budget to provide basic access to the digital world,” Cassau said.
“With persistent inflation, this is a demand that many cannot afford, and it’s essential we make sure access to tech is equitable.”
Cassau explained that M&G’s position as a “leader” in ESG investing makes it an ideal partner for the circular business model, helping to develop an impact metric to measure Grover’s effect on society.
To date, Grover has raised €800, in debt financing in Europe and $250m in the US.
It has plans to launch a new B2B software tool in the US, Spain, Austria and the Netherlands in 2022.