Grover: A Startup Case Study – Tech Rental Reimagined

Why buy what you only need for a while, when you can rent it for a fraction of the cost?

Renting isn’t just a trend; it’s a lifestyle shift. More people are choosing it for the freedom, lower risk, and convenience it brings, all without the weight of ownership. What started with homes and cars has now expanded into nearly every sector of the economy.

Craving stylish furniture without the long-term commitment? Fernish brings it to your door.

Dressing up for a special occasion? Rent the Runway has the perfect look.

Planning an outdoor escape? Arrive Outdoors equips you for the journey.

Need a car for the weekend? Alamo Rent a Car makes it hassle-free.

Tackling a big project? Sunbelt Rentals supplies the tools.

Dreaming of a getaway? Holidu helps you find the perfect holiday home.

And here’s the game-changer: you can now rent tech essentials like laptops, virtual reality (VR) gear, phones, wearables, projectors, smart home appliances, and more from…

Grover

Grover provides a subscription-based tech rental service, allowing customers to access the latest devices without the burden of full ownership. In essence, Grover reimagines consumer electronics consumption by emphasizing flexibility, sustainability, and affordability.

Company Status: Active

Founding Year: 2015

Headquarters: Berlin, Germany

Industry: Rental and Leasing

Business Model

B2C, One-sided, Product & Service

• Clients: Individuals and businesses in Germany, Austria, the Netherlands, Spain, and the U.S who want short-to-long-term access to the latest tech devices.
• Suppliers and Partners: Technology manufacturers, retailers like MediaMarkt Saturn, and a refurbishment process ensuring product quality for rental reuse.

It’s Like: Netflix but for Gadgets

Grover offers a subscription-based service for consumer electronics, mirroring the model popularized by streaming platforms like Netflix. Users pay a recurring fee for access to a wide catalog of products, with the flexibility to switch, upgrade, or cancel their subscriptions.

With some differences, though:

• Tangible Products: Unlike Netflix, which delivers digital content, Grover manages the logistics of physical products, including shipping, refurbishment, and recirculation.
• Ownership Option: Grover allows users to eventually purchase the rented device at a residual value, offering a pathway to ownership not present in content streaming services.
• Sustainability Focus: Grover emphasizes the circular economy by refurbishing and re-renting returned devices, differentiating itself from traditional linear consumption models.

Pain Points Addressed

• High Upfront Costs: Purchasing the latest tech products often requires significant upfront investment, posing a barrier for many consumers.
• Rapid Obsolescence: The fast pace of technological advancement leads to devices quickly becoming outdated, leaving consumers with depreciated assets.
• E-Waste: The traditional linear consumption model of electronics contributes to a growing problem of electronic waste.
• Limited Flexibility: Purchasing ties consumers to a specific device, limiting their ability to upgrade or switch to newer models easily.

Solutions Provided

• Flexible Access: Grover provides access to a wide range of tech products through affordable monthly subscriptions, eliminating the need for large upfront payments.
• Upgrade Options: Users can easily switch to newer models or different devices after a minimum rental period, staying up-to-date with technology.
• Sustainable Consumption: Grover’s circular economy model extends the lifespan of devices through refurbishment and re-renting, reducing electronic waste.
• Convenience: Grover manages the logistics of shipping, returns, and device refurbishment, providing a hassle-free experience for users.

Founding Story

• 2015: Grover was founded by Michael Cassau.
• Problem: Cassau recognized the challenge of accessing expensive technology due to high upfront costs and rapid obsolescence.
• Founder’s Background: Cassau had a strong background in finance and entrepreneurship, with experience at Goldman Sachs and Rocket Internet.
• Solution: Grover aimed to democratize access to technology through a subscription-based rental model, allowing users to access the latest gadgets without the burden of ownership.
• Early Growth: The company gained traction by offering flexible rental plans and a wide range of tech products, partnering with major electronics retailers like MediaMarkt Saturn for a wider reach.
• Innovation and Growth: Grover’s focus on the circular economy, refurbishing, and re-renting returned devices contributed to its appeal and sustainability. The company’s innovative model and strong growth led to its unicorn valuation in 2022.

Key Growth Milestones

• 2015: Grover is founded.
• 2020: Surpasses €50 million in Annual Recurring Revenue (ARR).
• 2021:
  • April: Achieves €60 million in ARR.
  • September: Reaches €100 million in ARR.
• 2022: Achieves unicorn status with a valuation of $1 billion.
• 2024: Secures a €50 million investment.

Market & Competition

Target Market

Grover’s target market consists of individuals and businesses seeking flexible and affordable access to the latest technology without the commitment of ownership.

• Individuals:
  • Tech Enthusiasts: Those eager to try out new gadgets and upgrade frequently.
  • Gamers: Attracted by the opportunity to access high-end gaming equipment without significant upfront costs.
  • Students and Military Personnel: Offered specific discounts, indicating a targeted approach to these demographics.
• Businesses:
  • Organizations seeking cost-effective solutions for equipping employees with technology.

Market Size and Growth:

• Global Electronics Products Rentals Market: Projected to grow from $997.31 million in 2024 to $1,787.77 million by 2033, with a CAGR of 6.7%.
• Global Consumer Electronics & Appliances Rental Market: Expected to expand from $73.57 billion in 2024 to $127.51 billion by 2029, reflecting a CAGR of 11.4%.
• Global Subscription Economy Market: Anticipated to reach $2,129.92 billion by 2034, growing at a CAGR of 15.9%.

Potential New Markets: Grover’s focus on international expansion indicates a strategic aim to target new geographic markets beyond its current presence in the United States and Europe. Some target countries of the brand include China, India, and Japan. This is supported by the global growth trends in electronics rentals and the subscription economy, which indicate significant potential in various parts of the world.

Number of Clients and Suppliers:

• Clients: Over 500,000 active renters comprising both individuals and businesses.
• Suppliers: Grover has an extensive network of retail partners, including MediaMarkt Saturn, and other online and offline retailers in Germany and Austria. They also collaborate with other tech brands like Nintendo, Bose, and Apple HomePod.

Competitor Landscape

Grover operates in a competitive landscape that includes both direct rental platforms and marketplaces for refurbished electronics:

Direct Rental Platforms:

• Go lemon: A Netherlands-based platform offering subscription-based rentals, primarily for Apple products.
• Lyte: A Seattle-based company operating an app-based B2C rental platform for power banks.
• Campus TVs (Deadpooled): Previously focused on renting TVs to college students.

Marketplaces for Refurbished Electronics:

• Back Market: An online marketplace for refurbished electronics, connecting buyers and sellers.
• Swappie: A vertically integrated marketplace specializing in refurbished iPhones.

Traditional Retailers and Telecommunication Companies:

• HMD Global (Nokia Phones): Competes by offering device options through traditional retail channels.
• freenet-mobilfunk.de: A German mobile service provider, potentially competing through device financing and subscription options.

Marketing & Sales

Main Positioning Values: Affordability, convenience, and sustainability

Website & Socials

• Grover’s website (grover.com) receives around 690,625 monthly visits. Over half of this traffic comes from direct visits, while a quarter arrives via organic search, followed by smaller shares from paid search, referrals, social media, and ads.
• The top five countries driving website traffic are Germany (approximately 58.6%), the Netherlands (11.2%), Spain (8.2%), Austria (3.2%), and the United States (2.2%).
• On social media, YouTube provides around 60% of the traffic from social platforms, followed by Facebook at 23%, LinkedIn at 13%, Telegram at 3%, and Instagram at less than 1%.

Media Coverage

• Retail Technology Innovation Hub: Reported Grover’s mix of equity and asset-based financing of $1 billion in July 2021.
• TechCrunch: Covered Grover’s funding rounds, including the $330 million raised in April 2022.
• Silicon Canals: RaiQsed €50M through a bridge financing round.
• Forbes: Covered Grover’s expansion to the US in September 2021.
• Berlin Business Office, USA: Reported on Grover’s growth trajectory and how it achieved unicorn valuation.
• The New Retail News: Highlighted how the rental model is aiding sustainability and convenience, pointing to Glover’s strategic role in the tech sector.
• Grover was among the finalists of the German Sustainability Award for Businesses in 2024

Marketing Strategies

• Target Audience: Grover targets individuals who want access to the latest technology without the commitment of purchasing, including:
  • Gamers and tech enthusiasts
  • Students and military personnel
• Customer Acquisition:
  • Strategic Partnerships: Collaborations with major electronics retailers such as MediaMarkt Saturn in Germany and Otto in Austria expand reach and visibility.
  • Product Diversification: Offering a wide array of tech products, from smartphones and laptops to gaming consoles and smart home devices, attracts a broader audience.
  • International Expansion: Targeting new geographic markets in countries such as China, India, and Japan to increase their user base.
  • Marketing and Branding: Grover has actively invested in marketing initiatives to raise brand awareness, such as the “Grover It” TV campaign launched in Germany, which strives to position Grover as a lifestyle brand that promotes tech leasing as a path to a better life.
  • Content Marketing: Utilizes content marketing strategies like informative articles on its blog and product reviews to attract and engage its target audience.
  • Social Media: Effective use of social media platforms for content distribution and engagement. They leverage influencer partnerships and user testimonials on these platforms to nurture leads and build brand credibility.
• Supplier Acquisition: Grover secures suppliers and partners by building brand partnerships with tech manufacturers, collaborating with specialized logistics and refurbishment providers, and integrating with leading electronics retailers to jointly support flexible tech subscription offerings and sustainable tech lifecycle management.

Product & Innovation

Subscription-Based Model for Electronics

Grover applies the successful subscription model, common in software and entertainment, to the tangible goods market of consumer electronics. Customers can rent a wide range of tech products, from smartphones and laptops to VR gear and gaming consoles, for a monthly fee.

Focus on Flexibility, Accessibility, and Affordability

Grover prioritizes user flexibility by offering various subscription durations, upgrade options, and a diverse product catalog catering to different needs and budgets. Users can switch, return, or buy the products at any time, offering flexibility and affordability absent in traditional ownership models.

Extensive Tech Product Range

Grover partners with major tech manufacturers to continually diversify its tech catalog, including an extensive range of tech products such as specialized and smart home devices, in response to evolving consumer demands. They also offer comprehensive damage protection covering up to 90% of damage, enabling consumers to rent without the typical risks associated with used electronics.

Integrated Circular Economy

Grover embeds sustainability directly into its business model by refurbishing and re-renting returned devices, differentiating itself from traditional linear consumption patterns. This promotes reuse, reduces electronic waste, and extends product lifecycles.

Financials & Metrics

Revenue Sources

• Subscription-based rental fees: Grover’s primary revenue stream is generated from monthly recurring fees paid by customers for renting tech products.
• Grover Care: The company offers additional damage coverage for rented devices, providing an extra revenue stream.

Metrics

Annual Recurring Revenue (ARR):

• €50 million (September 2020), a 120% YoY increase.
• €60 million (April 2021), approximately $71 million at the time.
• €100 million in ARR (September 2021).
• €140 million (2022), approximately $153 million at the time.

Funding and Investments: Grover has raised over $2 billion in equity and debt financing since its inception.

• 2015-2017: Early seed and venture capital funding to establish product-market fit and initial operations (exact amounts undisclosed).
• 2018: Raised $44 million Series A equity funding to accelerate growth.
• 2019: Raised $48 million in pre-Series B equity and debt financing to scale operations.
• 2020: Closed an asset-backed debt financing deal totaling €250 million ($297 million) to expand and support circular economy initiatives.
• April 2021: Completed a Series B round of €60 million ($71 million), combining €45 million equity with €15 million venture debt.
• April 2022: Raised $330 million in an extension of Series B  ($110 million equity and $220 million debt financing), achieving unicorn status with a valuation over $1 billion. This made Grover one of the largest financings in the circular economy start-up space.
• July 2024: Raised an additional €50 million ($55 million) in bridge financing.
• April 2025: Reported restructuring deal involving fresh capital of €30-35 million ($34-39 million) with creditors gaining majority equity.
• Grover’s investors include Fasanara Capital, JMS Capital, Varengold Bank, Samsung Next, Augmentum, Coparion, Circularity Capital, Viola Fintech, Seedcamp, LG, Korelya Capital, Cool Japan Fund, and Energy Impact Partners.

Employee Count:

• 2025: Over 400 employees.
• 2024: Over 300 employees.
• 2020: Over 100 employees.

Structure & Culture

Leadership:

• Lindsey Wood, CEO
• Nazo Moosa, Chairperson of the Board of Directors
• David Rosskamp, Board Member
• David Zimmer, Board Member
• Justin Le Fort, Group CFO
• Linda Rubin, COO & CIO
• Nicolas Cappiello, Chief B2B Officer
• Lisa Skowron Mota, Chief Revenue B2B Officer for the US
• Benjamin Lode, VP of Growth & Marketing

Founder and former CEO, Michael Cassau, stepped down from leadership and exited the company in late 2023. He has since moved on and begun a new venture, SKROL.

Culture:

• Mission-Driven: Changing how people consume technology.
• Guiding Principles:
  • Bring Our A-Game – strive for excellence.
  • Believe the Dream – trust the mission.
  • Cultivate Curiosity – keep learning and questioning.
  • Collaborative: International team tackling challenges together.
• Work Environment:
  • Hybrid model with remote work options.
  • Generous work-abroad days, travel discounts, and product discounts
  • Career growth via learning budgets & volunteering.
  • Wellbeing support (health & mental health perks).
  • Fast-paced startup with autonomy and impact.

Values:

• Accessibility: Making technology accessible to a wider audience.
• Innovation: Pioneering a new model of tech consumption.
• Sustainability: Commitment to the circular economy,  refurbishing products, and reducing e-waste.
• Customer Empowerment: Flexibility and choice in tech access.

Impact & Success

Customer Feedback

Grover users have mixed reviews about using the platform; there are glowing testimonials from verified users who praise the platform’s user-friendliness, affordable monthly payments, and efficient service on Reviews.io. Reviews on App Store and Trustpilot are equally positive.

MK rated Grover 5 out of 5 stars, commenting that, “What surprises me the most, is the extremely fast order processing. Grover works so fast, that your package arrives only 2 days after depositing the Order.”

Another reviewer, Poco Loco adds that, “Grover is a very good provider for rental tech. The tech is always in top condition, customer support actually helps you and the general experience with them is always good, I’ve been renting stuff since 2023 and I’ve never had any big trouble with them.”

There are some negative reviews on Trustpilot and Google Play. Danny van den bosch complains that he “rented tech from them for years, and suddenly, without notifying their customer’s they changed the option to buy the product after rental period. Existing customers go into a new contract without knowing there is no option to buy the product after rental period. VERY BAD, do not recommend.”

Sophie Thurner complains that “The website is quite buggy, and I frequently have trouble accessing my home screen. Additionally, it often shows items as “in stock” when they’re not. This leads to long waiting times for deliveries that ultimately never arrive, which is really frustrating.”

Success Stories

• Grover’s disruptive “rent instead of buy” model has transformed how people access technology. By 2024, about 2 million items had been rented through their platform, showcasing strong market acceptance and usage.
• Neue Fische: Streamlining Tech in Education
  • Challenge: Neue Fische, a German tech bootcamp, previously handled the logistics of shipping laptops to students and managing maintenance.
  • Grover’s solution: Provided rented laptops directly to students’ homes. After use, devices are returned, refurbished, and reused—boosting sustainability.
  • Outcome: Reduced tech waste and logistical burden, allowing the bootcamp to focus on training, not hardware.
• Enterprise Flexibility with Subscription Model
  • Grover Business Premium offers enterprises real-time control over rented tech assets to improve operational efficiency and reduce costs. Its B2B offering gives businesses, especially startups, the flexibility to rent, upgrade, and manage devices via an online dashboard. This shows growth in B2B adoption across sectors like software, finance, and administrative services.
  • Key benefits include month-to-month access, minimal waste, and 90% coverage on repair costs.
• Impressive Environmental Impact
  • The company’s circular economy approach has been widely successful, with Grover refurbishing and reselling returned devices. It also demonstrates high product utilization with items like GoPro cameras being rented up to 27 times on average, maximizing product lifecycle value.
  • In 2024, Grover’s rental model helped avoid 300,000 new device purchases. That’s around 543 tons of e-waste and 28,000 tons of  CO₂ emissions avoided by keeping devices in circulation longer.
  • A total of 1.9 million devices circulated in ~7 years, with 42% of devices rented out more than once, dramatically extending the product lifecycle.
  • Grover’s rental model promotes sustainability and reduces electronic waste by recirculating products multiple times and meeting rising consumer demand for eco-friendly tech consumption.

Growth & Future

Challenges and Risks

• Competition: Grover faces competition from other electronics rental platforms, refurbished device marketplaces, and traditional retailers.
• Economic Fluctuations: Consumer spending on non-essential electronics can be impacted by economic downturns.
• Logistical Complexities: Managing a large inventory of diverse electronic devices across multiple markets presents logistical challenges.

Future Plans

• International Expansion: Grover aims to expand its services to new geographic markets outside the United States and Europe.
• Increased Product Circulation: The company aims to significantly increase the number of product circulations, targeting 5 million by 2024.
• Market Leadership: Grover aspires to become the global leader in the consumer-tech subscription market.

Key Takeaways for Entrepreneurs

• Reimagine Existing Models: Grover’s success highlights the potential of applying proven business models, like subscriptions, to new markets. Don’t be afraid to borrow and adapt successful concepts from other industries.
• Embrace Sustainability as a Differentiator: In a world increasingly conscious of environmental impact, Grover’s circular economy approach provides a competitive edge. Integrating sustainability into your business model can be a powerful differentiator and attract environmentally conscious consumers.
• Target Evolving Consumer Preferences: Grover capitalizes on the shift towards flexible consumption and access over ownership. Understand evolving consumer preferences and tailor your offerings to meet these changing needs.
• Collaborate Strategically: Grover leverages partnerships with established players like MediaMarkt Saturn to expand its reach. Strategic collaborations can provide access to new markets, resources, and customer bases.
• Think Beyond the Immediate Sale: Grover’s subscription model fosters ongoing customer relationships and recurring revenue streams. Consider business models that extend beyond one-time transactions and prioritize long-term customer engagement.