Back Market, a French startup, has not received any additional large-scale investment. In May, the agency raised a $335 million Series D spherical. Today, the agency is issuing a $510 million Series E spherical, which values the agency at $5.7 billion.
Back Market reaches $5.7B valuation for its refurbished device marketplace
If you’re not familiar with Back Market, it’s a marketplace for refurbished electronics devices, primarily smartphones. In other words, if you think smartphones are expensive, you could get a cellular smartphone that is still in good condition without paying the full price.
There are numerous reasons why buyers may choose to buy a cellphone on the secondary market rather than a brand new phone from a service or phone manufacturer.In addition to saving money, many clients suppose that new telephones have the most effective characteristic of incremental updates in comparison to preceding technology models.
Many clients additionally need to keep away from producing extra waste and pick out a used tool for that reason. Many vintage smartphones actually end up in a drawer after all. A new battery and, from time to time, a brand new television are probably sufficient to transform a vintage tool into an appealing refurbished telecell smartphone.
Back Market doesn’t refurbish gadgets directly. Instead, third-party advocacy groups serve as sourcing partners for the back market. By listing their stock on Back Market’s market, they could discover clients more easily.
On the alternative side of the transaction, clients purchase gadgets via Back Market, as there’s a 30-day money-back guarantee. In total, 6 million customers purchased a tool on the secondary market.
Sprints Capital is the main investor in today’s investment round, with current buyers additionally participating, together with Eurazeo, Aglaé Ventures, General Atlantic, and Generation Investment Management. The French tech scene has been on a roll as PayFit, Qonto, and Ankorstore additionally announced that they’d raised hundreds of thousands of euros over the previous few days.
“Our intention is to make refurbished electronics the primary desire for tech purchases.” “We assume to see a comparable improvement within the electronics marketplace as we’ve witnessed within the pre-owned automobile marketplace in America, in which client confidence in shopping for second-hand automobiles has ended in income that has expanded twofold in comparison to new automobile income,” co-founder and CEO Thibaud Hug de Larauze stated in a statement. “The assistance and confidence of these funds, together with our growing consumer base, mark an important step in Back Market’s journey and, more importantly, for the overall economy.”
The common failure rate is a critical metric for the secondary market. Currently, the agency estimates that it has a failure rate of about 4%, which means that one out of every 25 telephones does not perform as expected in any way. That’s why customer support is so important in relation to consumer satisfaction. The agency additionally estimates that new gadgets have a 3-percent failure rate.
The startup expects to double in size with increased awareness in the U.S. marketplace; it presently has 650 employees. Back Market operates in sixteen countries, which include many European markets, the U.S., and Japan.