The cell phone rental company Everphone closed its Series D with 250 million euros in debt and 21 million in equity. CFO Veronika Heise-Rotenburg explains how the round came about.
Want to buy many more cell phones and tablets with the million-dollar loan: Everphone CFO Veronika von Heise-Rotenburg and CEO Jan Dzulko.
On December 28th of last year, “a whole avalanche fell from my heart,” is how Veronika von Heise-Rotenburg, Everphone’s Chief Financial Officer, describes it. Because all the contracts were finally signed and the money was in the account: the Berlin startup, which rents smartphones and tablets to companies and their employees, raised 250 million euros in debt capital from Citigroup, Phoenix Insurance and KfW.
In addition, there is 21 million euros in equity that came about as part of the Series D financing round. The CFO is satisfied with the assessment without providing any details. “It was a slight upround compared to the last round,” she emphasizes – at a time when other startups are experiencing downrounds. However, there is still “a way to go” to the unicorn, i.e. to the valuation of one billion.
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The equity came from Capnor and its partner Calista as well as existing investors such as Cadence Growth Capital. And the founder Jan Dzulko himself, who founded the company in 2016, also took part. “I am so convinced of our team, service and, above all, future growth that I invested in this financing round as a founder myself,” Dzulko is quoted as saying in a press release.
Long process to get a 250 million loan
Von Heise-Rotenburg tells Gründerszene that she and her team have been working on the round with investors since early summer 2023. However, the huge loan financing kept them busy for fourteen months. “It was a large selection process with around 30 refinancing partners.” In a complex process, contracts with six hundred to eight hundred pages went across her desk. “We want to adhere to them, so we have to read them beforehand,” laughs von Heise-Rotenburg. “The importance of 250 million euros for our business obviously justifies the fact that we put a lot of time into it.”
Everphone rents smartphones and tablets to companies and their employees. The Berlin company also takes care of the management and repair of mobile devices. For example, Everphone offers its customers a 24-hour replacement service. In order to save CO₂, the devices are refurbished and rented out after the first two years. According to the company, Everphone manages devices from manufacturers such as Apple, Samsung, Nokia, Google and Fairphone and employs around 300 people in Berlin, Munich and Miami.
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The use of the fresh money is clear: “The equity capital is for growth,” explains the CFO, “the debt capital is for the purchase of new devices and explicitly not for resources, setting up branches or the like.” According to the company, Everphone is planning to expand the platform by up to one million more devices, internationally in Europe and the USA. The startup currently manages over 350,000 devices for more than 1,000 companies, including international corporations and several DAX companies.
In 2023, Everphone is expected to have recorded sales of more than 75 million euros and doubled its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) compared to the previous year to 30 million euros. “Our next goal is now to reach 100 million euros in sales,” says Jan Dzulko, CEO of Everphone. And his CFO adds: “We are looking back on the most successful year in Everphone’s history” – the targeted profitability should soon become a milestone in the company’s history.