Berlin-based startup, Grover, offers the latest consumer technology including electronic scooters, on pay-as-you-go subscription, has closed a new financial transaction with “assets”, supplementing the existing credit line of Varengold Bank for a total of €250 million.
Additional capital will contribute to the next phase of growth, as the German company entered large-scale territory. Particularly, this is an increase of the existing credit line of € 55 million from Varengold through an unnamed auxiliary debt investor, to be used for Grover’s product range expansion and to purchase assets. In the end, buying the latest gadgets for their subsequent lease is quite capital intensive.
Grover is being operated in Germany and Austria, planning to launch out in 2020, pitches itself as part of the reputed “circular economy” whereby people rent goods rather than owing them. This offers a viable form of consumption with cost effective.
In addition, directly targeting consumers by offering subscriptions through its own website, Grover also works with major electronics retailers. This sees it inevitably becomes a form of financing at points of sale, allowing consumers to rent the goods that they considered to buy, with the opportunity to purchase it immediately later.
The company claims to be present in online channels of eight leading European electronics retailers and in more than 500 home appliance stores throughout Germany. It hopes to develop this market entry strategy in 202.
In addition, Grover plans to expand its B2B offering to meet the constant demand from business customers. It also states that aiming to make future micro-mobile cars affordable to users on a flexible monthly-basis, it will continue to develop its e-mobility category.