Electronics rental platform Grover has raised $1 billion in a mix of equity and asset-based financing.

The Berlin-based circular economy startup says this will allow it to increase circulations from 475,000 to date to five million by 2024.

According to a press release, “the round is made up of a $1 billion asset-backed facility from Fasanara Capital, and an extension of its Series B funding round from $71 million to $100 million.”

“The debt funding will be provided to a special purpose entity which will acquire and own the products Grover’s customers subscribe to.”

“This structure separates ownership of the assets from Grover’s subscription platform, allowing the company to focus on product development, customer acquisition and international expansion.”

What new products are you the most excited for? The new HP Omen gaming PC? The upcoming Steam Deck? An electric flying car?!

Grover’s Founder and CEO, Michael Cassau, says: “Consumer electronics are fundamental to modern life and we believe that everyone should have access to the tech they need at prices they can afford.”

“However, the linear nature of society’s consumption over the years has led to e-waste becoming the fastest growing waste stream in the world.”

“We’re capitalising on a major shift in consumer preferences to bring more tech to more people, while reversing the alarming e-waste trend that has such severe environmental consequences.”

“So far, we’ve circulated 475,000 products, equivalent to 1,400 tonnes of e-waste.”

“This latest round of financing is a huge vote of confidence from our investors and will allow us to realise our goal of becoming the world’s leading sustainable electronics subscription brand.”

The company is currently active in Germany, Austria, the Netherlands and Spain, and plans to launch further markets in Q4 2021.

Francesco Filia, CEO at Fasanara Capital, comments: “Grover has gone from strength to strength and is well on its way to dominating the $280 billion addressable tech subscription market.”

“Consumer preferences are quickly steering towards a subscription economy for electronic products, and as Europe’s fastest growing company in that space, Grover is poised for significant growth as a result.”

“The growth it has seen over the past 12 months is testament to the world class founder led management team, and we look forward to supporting them at this very exciting point in the journey.”