Everphone, a Berlin-based Device-as-a-Service platform, has closed a €15 million ($16.2 million) refinancing facility backed by Commerzbank and the German development bank KfW. The funding underscores growing financial support for the circular technology sector in Europe, as enterprises increasingly adopt flexible device management solutions.
The refinancing arrangement represents a significant step forward for Everphone’s supply chain strategy. The company will deploy the capital to purchase new smartphones, tablets, laptops and other devices for its corporate customer base, while simultaneously improving unit economics and lowering its financing costs. This approach reflects a broader shift in how European businesses manage technology procurement, moving away from traditional ownership models toward subscription-based consumption.
Financing Costs Drive Unit Economics
For Device-as-a-Service providers, unit economics represent the cornerstone of profitability. Veronika von Heise-Rotenburg, CFO of Everphone, highlighted the importance of this refinancing round in a statement: “In Device-as-a-Service, profitability is determined at the level of unit economics, and financing costs are one of the largest items there. Our corporate finance team has set up several facilities in recent years and has further reduced the interest margin with each round. The arrangement with Commerzbank and KfW represents the biggest step to date in terms of inventory.”
The facility demonstrates that traditional financial institutions are increasingly willing to support scaling operations in the circular economy space. Commerzbank’s role as lead investor signals confidence in Everphone’s business model among Germany’s largest commercial banks, while KfW’s participation reflects government-backed support for sustainable business practices.
Growth Trajectory in European DaaS Market
Founded in 2016, Everphone has built its operations around a subscription model where corporate clients access devices without bearing the capital burden of ownership. This approach appeals to organizations seeking to optimize IT budgets while managing device lifecycles more efficiently. The company’s growth coincides with broader corporate interest in reducing electronic waste and managing technology spend more flexibly.
The refinancing facility addresses a key challenge for DaaS platforms: the working capital requirements associated with maintaining substantial device inventories. By securing favorable terms from established financial partners, Everphone can expand its available inventory while maintaining competitive pricing for customers.
Broader Ecosystem Trends
Everphone’s refinancing round reflects a maturing European startup ecosystem where growth-stage companies increasingly attract attention from traditional financial institutions. Germany’s robust banking sector, combined with government development banks like KfW, has created favorable conditions for companies operating in sustainable technology and circular economy segments. As European enterprises accelerate digital transformation initiatives, demand for flexible device management solutions continues to expand, positioning providers like Everphone at the intersection of corporate technology needs and environmental sustainability objectives.