CMS supports Circularity Capital on £33m Berlin investment deal

Edinburgh specialist private equity firm Circularity Capital LLP has been revealed as lead investor in a £33 million funding round for Berlin-based technology business Grover in move supported by Edinburgh and Munich based lawyers from CMS.

The investment round, consisting of £11 million from equity investors and £22 million in debt capital, was led Circularity, with further support from fintech investor Coparion and Samsung Next.

Grover works in cooperation with Europe’s largest electronics retailers, redefining the way consumers relate to products by promoting an alternative to buying and owning, maximising usage and minimising waste. Its subscribers gain access on a monthly basis to consumer electronics, including smartphones, laptops, cameras, wearables and smart home appliances, returning items when they are no longer required. Through their platform, Grover increases asset utilisation, enabling products to be cascaded through multiple user cycles.

The new capital will help the company expand its market leadership in Germany and fuel its international expansion to continue its current revenue growth rate of 20 per cent 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.

The Circularity Capital investment is consistent with its hands-on approach of backing businesses capturing new sources of value through circular business practices. Through its investment, it will play a key role in supporting Grover’s the management team with its international roll out plan. David Mowat, one of the co-founding partners of Circularity Capital, has also joined the Grover Advisory Board.

Stuart MacLean, an Edinburgh-based corporate finance partner at CMS, said: “We are delighted to support Circularity Capital, advising them on all legal aspects of this funding round. Our firm’s structure enabled both UK and German-based colleagues to provide focused advice on this deal between our Edinburgh-based client and Berlin-based Grover.”

David Mowat, co-founding Partner at Circularity Capital, said: “With support from the CMS team we are delighted to complete this investment round with Grover. We have invested in a business with a highly scalable, commercially proven platform for the provision of access over ownership. Grover also has a strong management team and ability to deliver value for its rapidly growing subscriber base and retailer partners.”