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“Offering products based on a subscription model is a fundamental requirement for the circular economy”; Estonian startup Fairown is convinced of this. With the shift to subscription offerings, hardware companies would gain more control over product lifecycles and after-market products, and at the same time, demand in recent years has shifted away from ownership at maximum toward service and access. This, in turn, counteracts the waste of resources.
But building such a subscription model takes an average of a year and a half per store for original equipment manufacturers (OEMs). This is where the startup’s offering comes in, offering a financing platform for subscriptions and payment services as a “plug & play solution”: “Fairown offers a solution ten times faster to this complex and time-consuming challenge, which enables companies to develop subscription models for their hardware – Set up products in five weeks, depending on the country in question ”, says the company founded in 2018. So far, active in Northern Europe and the Baltic countries, it has already won customers such as Apple, HP, IKEA and STIHL, the latter being the first major German customer.
primeCrowd and Main Incubator join Fairown
Now investors from Germany and Austria have also been convinced. Prime incubator, Commerzbank Group early-stage investor and Vienna-based primeCrowd are jointly investing a seven-figure sum in the Tallinn-based company. “This investment paves the way for a sustainable future for Fairown, as we expand within and beyond the borders of Europe,” said Hendrik Roosna, CEO of the startup.
And primeCrowd CCO Florian Übelacker says: “The team surrounding founder Hendrik has managed to combine technology and sustainability and thus build a scalable business model that is already active in five countries, and in just two years. With the investment of our experienced and well-connected investors, I see great potential for Fairown to further drive international growth. ”
