Grover, an online sharing economy for technology, has raised €12m in an equity round led by Circularity Capital.
The funding round was also supported by Coparion and Samsung Next. UK-based private equity firm Circularity Capital supplied €4m of the equity round.
Alongside the investment was a debt facility, which reportedly raised €25m according to various reports in the media.
Berlin-based Grover is an electronics lending platform which lets consumers borrow products from retailers for a set period of time. Products available to subscribers include laptops, smartphones, cameras, smart home appliances, wearables and gaming products, among others.
It works by a consumer ordering a product and paying the first month’s rent, and once the product is delivered the borrower can use it for as long as they wish, just paying monthly rent. If a user breaks the product, Grover will pay half of the repair costs, and once the consumer is finished they just return the product.
This capital line will be used to expand Grover’s market position in Germany and support international expansion. It is hoping to continue its current revenue growth rate of 20 per cent a month.
Funds will also be used to fuel new product offerings, these include Grover Mix, a flat rate model to offer consumers increased flexibility and Startups get Grover, a new B2B offering.
Circularity Capital co-founding partner David Mowat said, “Grover has developed a highly scalable, commercially proven platform for the provision of access over ownership, the firm has a strong management team and has proven its ability to deliver value for its rapidly growing subscriber base and retailer partners.
“The investment in Grover is highly aligned with Circularity’s focus on using the circular economy to identify opportunities to drive financial value creation in parallel with positive environmental and societal impact.â€
As part of the transaction, Circularity Capital co-founding partner David Mowat will join Grover’s board of directors.
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