Fairown receives €5.7 million seed extension

Sustainable subscription model on course for growth: Fairown receives fresh capital and plans to expand its services in Germany

Frankfurt, September 10, 2024 - Estonian multi-category subscription provider Fairown has closed a seed extension of 5.7 million euros. This financing round enables the company to drive its expansion in Germany and further develop its product range. The investment was led by BONVENTURE, the first impact fund in the German-speaking region, and supported by existing investors such as neosfer, STIHL Ventures and Gateway Ventures.

Rapid expansion in Europe and entry into Germany

Since its foundation, Fairown has established itself as a leading provider of subscription services in Europe and is already active in nine countries. Following its successful market entry in the Baltic States, the Nordic countries and Poland, Fairown is now focusing on the German market. The company plans to scale its subscription services and expand its customer base in Germany.

The key advantage of working with Fairown for our business is the additional customer loyalty. It is becoming increasingly important to identify customer groups whose behavior is not yet reflected in the purchasing process.

Wolfgang Papé, General Manager of FundK

With BSH BlueMovement, Fairown has already gained its first major partner and launched a household appliance subscription on the German market. In addition, Fairown is working with Apple Premium Resellers such as FundK to offer innovative subscription models for Apple products.

Sustainable and scalable solutions for retailers

Fairown offers an asset-light solution that combines product buyback and credit risk, enabling retailers to maintain a direct relationship with customers. The company supports the circular economy by promoting more durable, repairable and recyclable products. According to Hendrik Roosna, CEO and founder of Fairown, the strong demand for these solutions confirms the gap in the market and the relevance of the offering.

We are convinced that the share of product subscription models will increase significantly. This will change the way valuable resources built into hardware products are managed.

Paul Garte, Investment Manager at BONVENTURE

The subscription model allows premium brands and retailers to offer their products at more affordable prices and strengthen customer loyalty. At the same time, consumers benefit from lower monthly costs and sustainable consumer behavior.

Circular economy and sustainable consumption as drivers

Fairown's service not only brings economic benefits for retailers and consumers, but also supports the circular economy, an important factor in the German market. With a recycling rate of just 13%, Germany lags far behind the rest of the EU. Fairown's subscription services help to improve this rate and promote the sustainable use of resources.