Refurbished electronics company Back Market has raised US$ 335 million (EUR 275 million) in a new investment round thanks to investors like Goldman Sachs and General Atlantic.
The online marketplace, which was established in 2014 and has been valued at US$ 3.2 billion (EUR 2.7 billion), now has almost five million customers worldwide. This was made possible through its global network of more than 1500 certified providers of refurbished products.
‘Our goal now goes beyond making renewed tech a viable option,’ says Back Market ceo Thibaud Hug de Larauze. ‘We want to make it the first choice for electronics purchases. The support and confidence of these prominent funds, together with our growing customer base, marks an important step in Back Market’s journey, and more importantly for the refurbished sector as a whole.’
The entrepreneur argues that renewed electronics are already the more cost-effective and more sustainable choice versus buying new. For instance, Back Market has successfully cut down the overall defective rates of products on the platform to 5%. This compares to the unofficial failure rate of new devices, which hovers at around 3%.
‘Now that we are beginning to successfully eliminate the gap in quality, we are gearing up to go toe-to-toe with the US$ 1.5 trillion (EUR 1.2 trillion) new device market,’ says De Larauze.
And Vianney Vaute, Back Market’s chief creative officer adds: ‘It’s a very positive signal that investors and consumers alike are bullish on the circular economy. Times are changing, and we are positioned to have a real and lasting impact on the way people purchase electronics—and the sustainability of the electronics industry as a whole.’
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