- Another sign of the growing circular economy is the growth of refurbished goods markets – in this case, refurbished electronic devices.
- Funding provided by Groupe Arnault, Eurazeo, Aglaé Ventures and Daphni brings total investment in company to $55 million to expand global footprint, including North American launch.
- The three-year-old French online marketplace targets $50 billion opportunity in providing access to refurbished products directly to consumers.
NEW YORK, June 13, 2018 – Back Market, the first marketplace exclusively dedicated to refurbished electronic products and appliances (smartphones, tablets, laptops, and other products), says it has closed a funding round totaling $48 million. The three-year-old e-commerce start-up received backing from investors Groupe Arnault, Eurazeo, Aglaé Ventures and Daphni. This new funding round brings total investment in the company to $55 million.
Intends to be the world’s flag-bearer for refurbished electronics
Back Market (www.backmarket.com) will use the funds to fuel the global expansion of its unique marketplace of refurbished products, a fast-growing market sector forecasted to reach $50 billion in sales from smartphones alone by 2022.
On Back Market, consumers purchase electronics directly from certified refurbishers, distributors and big-name brands that refurbish, verify and offer a minimum 6-month warranty to all of their products to meet the high standards of Back Market’s quality charter. Consumers have access to an ever-growing catalog of products refurbished by professionals that are priced 30 to 70% lower than new.
This innovative model has enabled the company to take leadership of the refurbished market in Europe in less than 4 years. The company’s success has recently taken it beyond European borders to the United States, where it launched earlier in 2018.
Refurbished products on road to becoming mainstream
Refurbished products are becoming an increasingly popular alternative to new ones. This is especially evident in the smartphone segment, where the refurbished market grew by 13% in 2017 as compared to the 3% growth of new smartphones in the same period – source: Counterpoint, March 2018.
Back Market’s goal is to lead and amplify this trend and make buying refurbished products mainstream, also providing a much-needed solution to an environmental crisis as 44.7 million tons of e-waste (electrical and electronic equipment waste) were produced in 2016.
Thibaud Hug de Larauze, CEO and co-founder, Back Market: “This fundraising is a signal of maturity not only for Back Market, but also for the rapidly expanding refurbished market. Our goal is to create a true global brand, with a name that is synonymous with the word ‘refurbished.’ Global leadership in this area is here for the taking, and speed is imperative. This funding makes it possible for us to rise to the challenge.”
|Antoine Loison, Managing Director, Aglaé Ventures: “We are thrilled to support a team of exceptional entrepreneurs and to welcome our sponsor, Groupe Arnault, as the main investor in this funding round. Our goal is to provide the company the support it needs to become the global leader for this new market.”|
Yann du Rusquec, Managing Director, Eurazeo Croissance: “We are very happy to support one of the most promising companies in the circular economy. Back Market’s performance has been exceptional, and we see tremendous potential in the company’s growth. We are particularly excited to help them with their international development following their recent expansion into North America.”
Pierre-Yves Meerschman, Partner and Co-Founder, Daphni: “Back Market brings an innovative approach to addressing a real market need and is well positioned to take advantage a tremendous market opportunity in the refurbished goods space. We are proud to be partnering with a company that not only retains a leading position in its market but one with an impressive approach to social and corporate responsibility.” unique ability to be socially responsible company that we are proud to be associated with.”