Capital injection into tech firm

Lawyers based in Edinburgh have advised a specialist private equity firm also based in the Capital on its role as a lead investor in a multi-millioneuro fundraise.

CMS has supported Circularity Capital in the €37 million (£33m) funding round for German tech business Grover.

The investment round, consisting of €12m from equity investors and €25m in debt capital, was given support by fintech investor Coparion and Samsung Next.

Grover works with Europe’s largest electronics retailers, giving subscribing consumers access on a monthly basis to items such as smartphones, laptops, cameras, wearables and smart home appliances, returning items when they are no longer required to boost usage and cut waste.

The capital injection will help the Berlin-based company expand its domestic market leadership and fuel its global expansion to continue its current revenue growth rate of 20 per cent a month. It will also fund new product offerings such as a B2B option.

Circularity Capital said the investment ties in with its “hands-on” approach of backing businesses capturing new sources of value through circular business practices.

Meanwhile, David Mowat, one of the co-founding partners of Circularity Capital, has joined the Grover advisory board. He said: “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.”

Stuart Maclean, an Edinburgh-based corporate finance partner at CMS, said: “We are delighted to support Circularity Capital… 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.”