Vienna, Austria-based Refurbed introduced right this moment that it has raised a $17 million spherical of enterprise capital to gasoline the enlargement of its market for used and restored client electronics.
Refurbed, which focuses on the European market, works with manufacturing unit companions specializing in restoring smartphones, laptops, and tablets. The firm makes these merchandise simpler to search out by way of its web site, whereas additionally providing warranties and customer support.
“We want to make refurbished products as normal as possible,” stated cofounder and CEO Peter Windischhofer. “With refurbished products, you can get good quality for less money and do something good for the environment. There’s not many products where you can say that.”
Founded in 2017, the corporate studies that it has greater than 150,000 prospects. Refurbed is using shoppers’ rising curiosity in second-hand gadgets. Rival Back Market, primarily based in Paris, raised a $48 million spherical in 2018 and has expanded into the U.S.
Windischhofer cofounded the corporate with Kilian Kaminski and Juergen Riedl. While Windischhofer had personally bought a refurbished cellphone, the expertise left him a bit bitter. The cellphone stopped working after three months, and he had no method to get a refund.
While learning within the U.S., he had seen refurbished merchandise turn out to be extra commonplace, however the concept lagged in Europe. Even although Back Market had launched, it was not accessible in Austria, Windischhofer stated. So the group launched their very own tackle the thought.
One crucial distinction, he famous, is that Refurbed solely works with 80 companions, whereas Back Market has many extra. Windischhofer stated he needed to give attention to fewer suppliers to make sure high quality management.
Finnish Evli Growth Partners led this spherical of funding, with participation from Almaz Capital, Bonsai Partners, All Iron Ventures, FJ Labss, Klaus Hofbauer, and Inventure Partners.
Refurbed at the moment operates in Austria, Germany, Italy, and Poland and noticed gross sales improve by 5 instances in 2019. Windischhofer stated the newest funding will probably be used to increase to new markets in Europe, in addition to enlarging the corporate’s presence in its present markets.
“The knowledge of people about refurbished products is still very limited,” he stated. “Our job is to educate them and tell them how great refurbished products are.”