Back Market, the premier global refurbished electronics marketplace, has announced a funding round of $120 million from investors Goldman Sachs, Aglaé Ventures, and Eurazeo Growth, continuing to tap into an $80 billion plus opportunity by selling refurbished electronic devices and appliances (smartphones, tablets, laptops, and other products) directly to increasingly eager consumers.
Back Market had previously raised $55 million from Aglaé Ventures, Eurazeo Growth, and Daphni.
On Back Market, consumers purchase electronics directly from certified sellers that refurbish, verify and offer a minimum 12-month warranty for all products to meet the high standards of Back Market’s Quality Charter.
This emphasis on quality, as well as its use of technology to present only the best value for each SKU has allowed the company to differentiate itself from other marketplaces as a trustworthy and simple way to buy refurbished electronics.
This provides consumers a safe and appealing alternative to buying new, ultimately helping to temper the pace of new device consumption.
Back Market was founded in 2014 and launched in the UK this year. The company also operates in France, Spain, Germany, Italy, Belgium and most recently, Austria and the US.
While Back Market intends to continue its expansion worldwide, the new funds will be used to continue strengthening its position in existing markets with a core focus on the United States, United Kingdom and Germany.
The company intends to invest heavily in quality control, ultimately growing its quality team up to three times its current size.
Funds will also be allocated to activities that solidify Back Market’s industry leadership: building a dedicated Machine Learning team to improve its algorithm, introducing new services around logistics and repair, as well as expanding on Back Market’s expertise to benefit its sellers.
Thibaud Hug de Larauze, CEO and co-founder, Back Market said, “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.”
Alexandre Flavier, Investor, Goldman Sachs Growth added, “Back Market has a clear mission to build a category leader in the circular economy, supporting the world’s transition to more sustainable consumption. We are very excited to partner with Thibaud and his exceptionally talented team as they continue to execute on their ambitious growth plans and expand into new markets.”
Antoine Loison, Co-founder & General Partner, Aglaé Ventures, added, “Aglaé Ventures is proud to be an early shareholder of Back Market.
“We are excited to back its founders over the long run and contribute to the development of a more eco-friendly environment to buy and sell electronic products.”
Yann du Rusquec, Managing Director, Eurazeo Growth says, “The current crisis proves the incredible resiliency of Back Market’s model which, in combining value for money, stable local supply chains, and a strong sustainability mission, has allowed it to respond to consumers’ needs even through the surge brought on by these trying times. Needless to say, the company’s performance is extremely healthy right now.”