Buy used and refurbished iPhones to pollute less and save the environment. It was born with this goal swappy, a Finnish iPhone buying, refurbishing and selling company announces $124 million (€108 million) Series C funding round. The round was led by the investment fund Greens, specializing in tech and sustainable businesses, along with investors Lifeline Ventures, Inventure, Reaktor Ventures and Tesi. This latest round follows an earlier $40,6 million (€35,8 million) Series B round in June 2020, and brings the company's total funding to more than $171 million (€149 million). .
The Finnish company will use these new financing to support its presence in Europe and accelerate the growth of the sector, focusing on consolidating its presence in the 15 markets in which it is already present, in particular in Italy and Germany. After doubling its market presence since last summer from 8 to 15 countries, Swappie has made refurbished devices more affordable which will allow it to increase its headcount from 1.200 to 2.200 people by the end of this year .
Used and refurbished iPhones: a 100 billion euro market in Europe
The market opportunity for Refurbished smartphones It is huge. In Europe alone, it is worth 100 billion euros and used or refurbished phones today represent just over 10%. With only 25% of used phones currently sold, there is ample growth potential.
According to research firm Counterpoint Research, there was a 4% jump in global sales of refurbished phones in 2020 compared to the first half of the year, considering the markets of USA, Latin America, Europe, Southeast Asia, India and Africa. The most sold refurbished smartphones are iPhones which on average have a price up to 3 times higher than that of other competing brands.
This leap also affected Swappie which increased its sales to 110 million dollars (97 million euros) in the midst of the pandemic, compared to 34 million dollars (31 million euros) in 2019. This is because 2020 was the year which suffered most of production blocks and social restrictions. And so used and refurbished iPhones took their place in the hands of customers. Surely the lower average selling prices are the main driver, but for many it's not just a question of money.
Used and refurbished iPhones: a sustainable choice
In the fight against the climate change, between the depletion of resources and the damage caused by toxic waste in the environment, smartphones constitute an environmental problem, often underestimated given that they are made with materials destined to become highly polluting waste, which are difficult to recycle. After all, just think that 80% of greenhouse gas emissions throughout their life cycle come from their production. Then there is the assembly, transport, distribution and use. Keeping a phone in use for an extra year would save over 2 million tons of emissions.
Supported by increased consumer awareness of the large environmental impact of electronic waste, Swappie has seen consumer demand grow, putting it at the forefront of the new wave of European scale-ups on the market. In fact, during 2022 it is expected that 1,4 billion new smartphones will be sold and in their first year of use alone they will generate 146 million tons of CO2 emissions, 83% of which due to production and shipping.
Swappie manages the entire value chain
Unlike other marketplace players who partner with external vendors to put their items up for sale, Swappie controls the entire supply chain and manages the entire process, from testing and repairing used phones, to selling refurbished devices. directly to consumers, providing a guarantee of at least one year.
