Back Market has created a marketplace to connect companies that restore used gadgets with consumers through a one-stop shopping experience, complete with warranties and customer service. This particular model has garnered significant support from investors over the years. Now the Paris-based startup has revealed that it has closed a funding round of around €110 million from investors Goldman Sachs, Aglaé Ventures and Eurazeo Growth. While brand-new devices enjoy a significantly higher purchase rate than used gadgets the world over, the French company has seen meteoric growth over the last few years.
How Back Market Succeeded in Creating A Marketplace for Refurbished Gadgets
Founded in 2014, Back Market currently operates in France, Spain, Germany, Italy, Belgium, the UK and Austria. However, it also broke into the US market back in 2018. On Back market’s platform, users can purchase electronic devices from over 1,000 certified sellers. These sellers have to ensure that the high standards of the startup are met as they refurbish, verify and offer a minimum 12-month warranty for all products. The customer satisfaction rate on Back Market is impressive and it aims to hold onto that reputation as expansion continues.
This investment round will certainly see funds dedicated to increasing expansion, but the startup mainly hopes to bolster its position in markets like the US, UK and Germany. Funds will also be allocated for improving its dedicated machine learning team along with the platform’s algorithm. New services will also be introduced around logistics and repair, as well as expanding on Back Market’s expertise to benefit its sellers.
While the platform offers a great service it also wishes to emphasise its eco-friendly approach. The electronic waste crisis is devastating for our planet and through the refurbishing and re-selling of items that still hold tremendous value for customers, Back Market hopes that its solution will help make a dent in the global carbon footprint.
Thibaud Hug de Larauze, CEO and co-founder, Back Market demonstrated how this investment will help the startup achieve its goals: “This fundraising is a signal of maturity, not only for Back Market but also for the rapidly expanding refurbished industry. We have created a global brand and established a name that is not only synonymous with ‘refurbished’ but also with ‘quality’. With this round of funding, we are optimistic that we can reinforce our leadership in this market and have a lasting positive impact on consumers’ perceptions about refurbished devices.”