A new-to-Miami company is joining the "unicorn" club.
Grover, a Berlin-based consumer technology rental website that recently established its U.S. headquarters in Miami, reports it is now valued at over $1 billion after raising $330 million in a combination of debt and equity funding. The company plans to use the capital to grow its subscriber base in Europe and the U.S. and enter new markets, said VP and U.S. General Manager Andrew Draft.
Part of that growth will come from expanding its business-to-business offerings, he added. Grover enables users to rent tech products, like smart phones and laptops, on a monthly subscription basis instead of purchasing them outright. That could be an enticing solution for entrepreneurs who may be trying to get their businesses off the ground.
"Instead of spending $2,000 a head on a computer and monitor for 50 employees, you can save your dollars and invest in [your businesses] growth," Draft said.
Prices vary based on the equipment. Grover's website currently lists a 13-inch MacBook Air computer at $44.90 a month, or $538.80 a year. In comparison, purchasing a new MacBook Air outright from Apple starts at $999.
There's also some benefits on the sustainability side. Grover reports its subscription service model reduces electronic waste by renting out devices to several users over its lifetime. That ensures items are not underused and tossed aside while still functional.
"You can swap out [a device] in a year when the tech becomes obsolete instead of collecting huge amounts of products," Draft said.
The consumer technology rental space is expected to grow as new electronics and appliances – think smart devices, for example – hit the market, according to a report from industry researcher IBISWorld. Customers who rent their tech often lack the funds or credit necessary to buy or finance those goods outright.
Grover has more than 450 employees internationally, with 20 based in the U.S. The company is in the process of hiring 100 new employees for remote and in-person roles at its Brickell headquarters.
"We're doubling down on marketing and operations to build the Grover brand in the U.S.," he said. "That's the goal for the year."
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