Meet Swappie, the Finnish startup that swapped $124 million to transform smartphone consumption in Europe

The overall market for used and refurbished smartphones is forecast to grow at an annual growth rate of 10.23% between 2022 and 2027. Cashing in on the new trend to make the circular smartphone economy more accessible, Finland-based Swappie has announced a $124 million (€108 million) Series C funding round.

The round was led by growth equity firm specialising in tech-enabled, sustainable businesses Verdane, alongside existing investors Lifeline Ventures, Inventure, Reaktor Ventures and TESI.

The latest round has brought its total funding to over $171 million (€149 million), following a Series B round of $40.6M (€35.8 million) in June 2020. 

The startup, which buys, refurbishes and sells iPhones will use the new funding to bolster its European expansion and accelerate growth of the category as a whole to become the leading European player in the refurbished smartphone sector. It will focus on scaling operations in existing 15 markets across the continent, notably in Italy and Germany. The company has almost doubled its market presence since last summer—increasing from eight to 15 countries.

Unlike other players that work as a marketplace, partnering with external sellers to list their items, Swappie controls the entire supply chain, managing the entire process, from testing and repairing used handsets, to selling the refurbished devices direct to consumers, with at least a 12-month warranty.

Sami Marttinen, Co-founder and CEO of Swappie said: “Our main priority is accelerating growth in our current European markets, with a view to expanding further afield in the next few years, to meet rising demand. People are increasingly looking for ways to lessen their environmental impact and locking on to the fact that smartphone purchasing is an area we can all address."

Janne Holmia, Partner at Verdane added: “As people and companies progressively move towards a more sustainable lifestyle, the iPhone refurbishment and re-commerce space has grown considerably, and with it Swappie, which has demonstrated the potential to become Europe’s market leader in refurbished smartphones.

Earlier, last month Parisian refurbished electronics marketplace Back Market raised €450 million in a Series E round to further the company’s growth plans, specifically in the US market.