Grover announces “asset-backed” financing deal of €250 million
Berlin-based Grover announced it has closed a new asset-backed financing deal, topping up an existing facility with Varengold Bank to a total of €250 million. The new asset-backed funding deal is an increase of an existing €55-million debt facility with Varengold Bank to a total of €250 million, via a supporting debt investor. The transaction brings Grover’s total funding volume to roughly €300 million.
Established in 2015, Grover allows users to rent equipment and electronics such as drones, smartphones and tablets via a monthly subscription. Last year, the company recirculated nearly 100,000 devices and recorded a 200% growth rate in active subscriptions and cash revenue.
The additional funding will be used to expand Grover’s product range and will go toward the purchasing of assets. This allows Grover to respond to growing demand for its service in Germany, Austria and other markets to be launched in 2020. Importantly, Grover will use the capital to further develop its e-scooter category.
The funding also supports the expansion of Grover’s cooperation with major electronics retailers. The company is currently present in the online-channels of eight leading European electronics retailers and in more than 500 brick-and-mortar stores across Germany. In addition, the company will expand its B2B offering, in order to serve the rapidly rising demand from its business customers.
Every device rented from Grover is either new or as new and comes with Grover Care – if something breaks, Grover pays 90% and user the remaining 10% of the costs for repair or replacement. Exceptions apply. In the case of drones, Grover covers 50% of the repair costs and if repair is no longer possible, the user pays only 50% of the Recommended Retail Price determined at the beginning of the rental. Also, all Grover drones have liability insurance for damages of up to €3 million with a deductible of €1,500, but customers from Germany can reduce the deductible to €0 by completing the “Drone liability full protection.” Coverage is underwritten by HDI Global SE .
