Tallinn-based provider of subscription service for variety of business ventures Fairown raises €5.7M

Tallinn-based provider of subscription service for variety of business ventures Fairown has raised €5.7M in a seed extension round. The funding round was led by Munich-based VC BonVenture, with support from existing investors Neosfer (the early-stage investor and innovation unit of German Commerzbank Group), STIHL Ventures (the corporate venture arm of STIHL), and Austria’s Gateway Ventures.

Founded in 2018 in Tallinn by Hendrik Roosna and Taivo Turnpu, Fairown provides a solution that allows banks, brands, and retailers to offer their products through a subscription-based model, with a pay-later approach. This system helps companies transition to a product-as-a-service model, allowing customers to access products regularly without having to purchase them outright. Additionally, Fairown facilitates the management of product renewal cycles by encouraging customers to return used products to the seller instead of sending them to landfills or reselling them. For instance, customers who want to update products like Apple devices every year or two can easily upgrade to the latest models through the platform.

The company's approach helps businesses increase sales and build customer loyalty. Fairown partners with banks, which assume the credit risk associated with the pay-later model.

Fairown operates in nine countries, including Estonia, Latvia, Lithuania, Sweden, Poland, and others.

The Estonian startup's clients include the German home appliance company BSH BlueMovement, which represents the Bosch brand, German computer retailer and service center Apple Premium Reseller (APR) FundK, and others.

Fairown will use the investment to develop and scale the product and expand its customer base in Germany.