Circularity Capital LLP, the specialist private equity firm supporting growth stage European SMEs in the circular economy, continues to build its portfolio with a €4m investment in Grover, a high-growth Berlin-based business, focusing on pay-as-you-go subscriptions as an alternative to technology product ownership.
Circularity Capital led the €12m of equity round supported by fintech investor Coparion and Samsung Next.
The new capital will be used to expand Grover’s market leadership in Germany and fuel its international expansion to continue its current revenue growth rate of 20% per month. The capital will also fund new product offerings such as “Grover Mix,” a flat rate model which offers maximum flexibility for customers, and “Startups get Grover”, the newly created B2B offering.
Working in cooperation with Europe’s largest electronics retailers, Grover has established itself as a leading player in the consumer electronics market by redefining the way consumers relate to products by promoting an alternative to buying and owning, which maximises usage and minimises waste.
Grover’s subscribers gain access to consumer electronics on a monthly basis, returning items when they no longer required. Examples include smartphones, laptops, cameras, wearables and smart home appliances. Through their platform, Grover is able to increase asset utilization and enable products to be cascaded through multiple user cycles.
The fund-raise builds on a successful 2017 for Grover, during which the company achieved a tenfold sales growth and partnered with market leaders such as MediaMarkt, Saturn, Gravis, Conrad and Tchibo.
Circularity Capital’s investment in Grover is consistent with its hands-on approach of backing businesses capturing new sources of value through circular business practices. Circularity Capital’s investment will see it play a key role in supporting the management team accelerate its international roll out plan. David Mowat, one of the co-founding partners of Circularity Capital, has joined the Grover Advisory Board.
David Mowat, co-founding Partner at Circularity Capital, 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.”
Michael Cassau, founder of Grover, commented: “The new financing is a big step for Grover on our way to reshaping the way consumers access electronic devices. In addition to allowing expansion into new markets, the funding will allow us to offer new and innovative usage models to our customers. For us it is very important to have the support of an institutional investor who understands our vision and is dedicated to developing Grover’s market leading position. We were attracted by Circularity Capital’s specialist expertise and network in the circular economy and are excited to be working together to deliver the next phase of Grover’s growth”.
About Circularity Capital:
Circularity Capital was founded in to deliver value for investors by supporting SME growth and innovation in the circular economy. Circularity Capital’s investment strategy specifically addresses the increasing challenges faced by traditional linear, ‘take-make-dispose’ models of production and consumption. Circularity Capital seeks out businesses that can out-perform the market and their linear competitors by applying the circular economy framework. Circularity Capital targets investments of £1m-£5m in profitable, fast growing European SMEs operating across the circular economy. Circularity Capital’s investors include financial institutions, corporations, family offices and leading global impact investors. www.circularitycapital.com
Grover brings the freedom of renting to the consumer electronic market, offering a simple subscription model for the best in tech. Customers can get access to a multitude of technology products, including smartphones, laptops, VR gear, cameras, wearables and smart home appliances on getgrover.com or through Grover’s partner network. Three of Germany’s ten biggest e-commerce sites, including Europe’s leading electronics retailer MediaMarkt Saturn Group, and >300 offline stores offer rentals with Grover to their customers. Grover’s service offers freedom of choice and full flexibility allowing customers to use, switch, buy, or return products depending on their needs and to maximize the value of their tech in their lives. Grover is a member of the Ellen MacArthur Foundation’s Circular Economy 100 program. www.getgrover.com