Refurbed, the European marketplace for used electronics raised $17 million in Series A financing in the last year and has since received $54 million in a Series B round of funding, which Evli Growth Partners and Almaz Capital lead.
The Company is backed by current investors like Speedinvest, Bonsai Partners and All Iron Ventures, as a variety of new investors join them, including Hermes GPE C4 Ventures, SevenVentures, Alpha Associates, Monkfish Equity (Trivago Founders), Kreos, Expon Capital, Isomer Capital and Creas Impact Fund.
Refurbed Raises $54M Series B
Refurbed provides an online marketplace that offers refurbished electronics that have been checked and renewed. They are typically 40% less expensive than brand-new and are backed by 12-month warranties. The Company says that in 2020, the Company’s revenue grew by 3x and surpassed greater than EUR100 million GMV.
The Company operates across Germany, Austria, Ireland, France, Italy and Poland. The Company plans to expand into three additional countries before the end of 2021.
Riku Asikainen of Evli Partners commented: “We see the huge potential of Refurbed’s model. Refurbed helps to create the circular, sustainable economy.”
Also Read: Box to Acquire SignRequest for $55M
Peter Windischhofer, the cofounder refurbed, said, “We have lower prices and offer a greater product assortment, with a focus on the quality of our products. We concentrate on selling new and attractive products, which means we get happy customers who recommend us to others. It is a great feeling to purchase refurbished items.”
The Company offers 130 refurbishers on its marketplace.
Other competitors in this sector comprise Back Market (raised EUR48 million), Swappa (US) and Amazon Renew. Refurbed is also competing against Rebuy in Germany and Swapbee in Finland.
The Company targets large-scale businesses aiming to reach 100 customers, including Verizon, CarMax and Porsche. The Company’s revenue grew by a third in 2021 and is currently at the high end of double-digit million, Enam says. He points out one of the main reasons for the growth: it is not the new customers. However, it is the existing users, evidenced by a retention rate of over 200 per cent.
Customers often start by signing contracts with five or six numbers to test the software within a specific company area before expanding it to other sectors.