The company develops products that should be practical and at the same time reduce packaging waste.
(Photo: Everdrop)
Munich The start-up Everdrop has secured 80 million euros in growth capital in a Series B financing round. The Munich-based company wants to make plastic packaging superfluous in the home and has launched tabs that customers can mix with water to make cleaning products.
“Many venture capitalists are currently considering whether they should invest in the current environment,” said co-founder David Löwe on Thursday. “We are all the more pleased that the issue of sustainability remains a major issue despite the upheavals – and hopefully will become even greater.”
Everdrop is already active in neighboring countries such as Switzerland, Italy and France. The investor funds are now to flow into the expansion into other European markets. In addition, the company wants to be more present in retail with the fresh capital and further develop the product range. Care products such as liquid soap and shower gel will then be added to the existing range of dishwasher tabs and toilet cleaning products. “We also want to introduce two new product categories this year,” said Löwe, without giving any details.
Otherwise, packaging-free products often come from the eco niche. However, at Everdrop, all three founders come from the world of marketing. The company has hundreds of thousands of followers on social media. The products have a chic design, sustainability should be combined with a coolness factor.
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But the potential impact is huge. According to the latest survey by the Federal Environment Agency, around 19 million tons of packaging waste were generated in Germany in 2019 – a new record. In 2009 it was only 15 million tons. The Federal Environment Agency also attributes this to the increasing proportion of one- and two-person households and senior citizens: “Both of these mean that smaller filling sizes and pre-portioned units are bought.”
Investments in tech start-ups are falling
The growth financing is being led by Belgian investor Sofina, an impact fund owned by Swiss banking group Lombard Odier, and Silicon Valley-based venture debt specialist TriplePoint Capital. The existing investors Felix Capital from Great Britain as well as HV Capital and Vorwerk Ventures from Germany also participated.
“Investors see the great potential for growth.”
(Photo: Everdrop)
The venture capital offshoot of the Thermomix manufacturer contributes its sales expertise. The equity and debt capital brought in increases Everdrop’s valuation to a three-digit million amount. Before the latest round of financing, the start-up had already raised 18 million euros. HV Capital (Holtzbrinck Ventures) is also among the investors.
Financing has actually become more difficult for start-ups in view of the global turmoil. Global investments in tech start-ups fell to eight billion dollars in the first quarter from $10.3 billion in the previous quarter. “In any case, the market is likely to be characterized by two to three quarters of uncertainty and shocks,” says Alicia Fuller, start-up expert at Silicon Valley Bank in New York.
But Löwe says: “The investors see the great growth potential of Everdrop.” According to industry estimates, the company tripled its sales last year to a double-digit million amount.
Harold Boël, head of Belgian investor Sofina, was convinced of Everdrop’s business model: “Everdrop has the potential to drive positive change in the consumer goods landscape.”
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