French startup Back Market has secured a funding round of $48 million from Groupe Arnault, Eurazeo, Aglaé Ventures, and Daphni. The company intends to use the money to grow its refurbished electronics marketplace globally, with a particular focus on the North American markets.
Founded in 2014, Back Market works with certified refurbishers, distributors, and brands to offer reconditioned electronics to the consumers. It also offers at least six months of warranty for any purchase and states that the prices of the goods listed on the marketplace are from 30 to 70 percent lower than those of new gadgets and appliances.
Back Market currently operates in France, Germany, Italy, Spain, and Belgium, as well as the US where it launched in early 2018. Its team totals about 100 people spread over the offices in Paris, Bordeaux, and New York.
“Our goal is to create a true global brand, with a name that is synonymous with the word ‘refurbished’,” said Thibaud Hug de Larauze, CEO and co-founder of Back Market. “Global leadership in this area is here for the taking, and speed is imperative. This funding makes it possible for us to rise to the challenge.”
The current funding round brings the total investment raised by Back Market to $55 million. It's targeting a sizeable market—the sales of refurbished smartphones alone are forecasted to reach $50 billion by 2022. In 2017, the market grew 13 percent to some 140 million units sold, showing a growth rate four times higher than that of the new smartphones market.