In an investment round led by funds Neoteq and Gateway Ventures, Circuly raised a total of 13,475,000 CZK, which it will use to expand its solution into new industry segments and support its expansion into Central and Eastern Europe. Czech DEPO Ventures also participated in the investment round.
“Circuly impressed us not only with its vision of sustainability, but also with its very pragmatic approach to digitizing subscription models for physical products. We believe that their solution will find wide application not only in Western Europe, but also in regions where the circular economy is still on the rise. Our goal is to help Circuly gain more exposure in Central and Eastern European markets and connect them with relevant partners,” says Petr Šíma, Partner at DEPO Ventures.
The investment in Circuly is part of DEPO Ventures’ broader strategy to support innovative start-ups that can have a major impact on markets in the CEE region. In addition to DEPO Ventures, German funds Neoteq, Gateway Ventures, Technologiefonds OWL and DANUBE ANGELS have also joined the investment round and together believe in Circuly’s potential to become a key player in the circular economy.
“Despite the challenges of recent years, the company has achieved a year-on-year growth in GMV (total value of goods sold per year) of 438%, which clearly demonstrates the growing customer interest in subscription models. At the same time, companies are constantly looking for new ways to generate revenue, and interest in as-a-service models is growing significantly. We are also excited about DEPO’s reach in Central and Eastern Europe, where companies now have an ideal opportunity to get to know Circuly better and take advantage of the new opportunities presented by the circular economy,” explains Nick Huijs, founder of Circuly.
With the new funding, the startup will focus on entering sectors such as fashion, garden equipment and heavy engineering. In addition, it plans to expand its subscription management ecosystem to help even more companies adapt to the circular economy.
Stroller, furniture or fashion rental
Nick Huijs founded his first e-commerce project in 2018, focusing on selling baby strollers. However, his interest in the circular economy soon led him to rethink the traditional sales model, and instead of selling 50 baby strollers, he decided to offer them by subscription. Soon after launching, however, he ran into the pitfalls that accompany the subscription model. He also found that the market did not offer tools aimed at renting physical products. Therefore, in 2018, he launched the first baby stroller subscription model in the Netherlands.
The experience taught him how challenging it is to manage product subscriptions, from managing recurring payments to tracking assets and returns. So he decided to develop his own solution, which led to the creation of Circuly – software for managing physical product subscriptions.
Renting is growing in popularity in Europe because it offers people flexibility and access to products that they would otherwise have to invest larger sums of money in, but don’t need to use in the longer term. Platforms such as Grover in Germany allow the rental of electronics, HURR Collective in the UK offers luxury fashion, while France’s Furniture Club provides flexible home and office furnishings. Renting baby equipment through Baby’s Best in Germany is attractive for parents who only need strollers or car seats for a limited time. The circular economy trend is responding to changing consumer preferences, who increasingly prefer temporary access to things rather than ownership, which is often a cheaper option and also planet-friendly.
The startup Circuly is currently based in Bielefeld, Germany, near Dortmund. The company has 11 employees and plans to expand its team with new colleagues thanks to the investment. Circuly managed to raise CZK 31,850,000 in the 2021 investment round.
