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Back Market just raised $120 million from the likes of Goldman Sachs to exploit the $80 billion market for refurbished electronics

Back Market Founders
  • French tech startup Back Market has raised $120 million from investors including Goldman Sachs, Aglaé Ventures (the venture arm of Groupe Arnault), and Eurazeo Growth.
  • The company, founded in 2014, operates an online marketplace for refurbished electronic items across Western Europe and the US. 
  • "The company trajectory has been spectacular and this raise is about continuing that," Serge Verdoux, managing director at Back Market, told Business Insider in an interview. "Demand has never been so strong because confined people need electronics more than ever."
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French tech startup Back Market has raised $120 million from investors including Goldman Sachs, Aglaé Ventures (the venture arm of Groupe Arnault), and Eurazeo Growth.
The company, founded in 2014, operates an online marketplace for refurbished electronic items across Western Europe and the US. Back Market itself estimates the market for refurbished electronics to be $80 billion annually.
"The company trajectory has been spectacular and this raise is about continuing that," Serge Verdoux, managing director at Back Market, told Business Insider in an interview. "Demand has never been so strong because confined people need electronics more than ever."
Coronavirus has forced people to stay indoors, and internet usage is on the up as people work from home, search for jobs, and help teach their children. That's led to increased orders for devices that make working from home a little easier.
At the same time, e-waste is also increasing. Over 44 million tons of electronic waste was produced in 2016, and that's projected to grow to 52.2 million tons by 2021.
On Back Market's website you can find refurbished AirPods for £193, down from the £249 retail price. Buyers can also look for refurbished phones, laptops, and headsets.
Back Market
Back Market is riding a trend towards re-using equipment rather than buying new products. In France, belief-driven consumers make up 65% of the market, while that figure is 59% in the US, as people look to buy more sustainably, per Edelman.
"Customers care about sustainability and this is a top of mind issue for consumers and will continue to be going forward," Verdoux added. "The environment is a core concern of our mission."
Back Market started operations in France before expanding to Spain, Germany, Italy, Belgium, and most recently, the United Kingdom and Austria. The company expanded into the US in 2018 and it is now the startup's second-largest and fastest-growing market.
Funds from the raise will be used to build out the company's quality control teams, continue its geographic expansion and strengthen existing markets, and grow the Back Market team. The company has over 300 employees worldwide and will be adding to its headcount during the year, Verdoux said.
Back Market has now raised $175 million in total. Conversations about the fundraise began last autumn before the deal closed in mid-March.
SEE ALSO: 'Banking in America is broken:' The CEO of $5.8 billion challenger bank Chime wants to put the customer first during the coronavirus crisis
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* This article was originally published here Press Release Distribution

Source - https://www.businessinsider.com/?hprecirc-bullet

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