Back Market, the renewed electronics marketplace, raises €450 million

After the announcement of its Series D in May 2021, Back Market, the leading renewed electronics marketplace, announces an investment round of $510 million. The round is led by new investor Sprints Capital with continued support from Back Market’s existing investors. 

The Series E round underpins Back Market’s game-changing vision and allows the company to build on its position as the leading marketplace exclusively dedicated to the sale of expertly refurbished electronics.

Back Market’s cofounder and CEO, Thibaud Hug de Larauze, explains: “Our goal is to make refurbished electronics the first choice for tech purchases. We expect to see similar to the same development in the electronics market as we have witnessed in the second-hand car market, where sales of second-hand vehicles have increased compared to new car sales in. The support and confidence of these funds, together with our growing customer base, marks an important step in Back Market’s journey, and more importantly, for the circular economy as a whole.” 

Following its core mission: Back Market is determined to make circular tech mainstream by delivering an experience even better than buying new.

Trust in renewed electronics is paramount to achieving the vision of a circular economy. Back Market is therefore proud to declare the average defective rate on the platform is now as low as 4%, almost on a par with the average unofficial failure rate of new devices around 3%. A major focus for the company will be to further limit defective rates across all devices so that consumers have a sustainable alternative to buying new tech. The quality is further guaranteed by a 2-year contractual warranty for all purchases.

Consumers are embracing more environmentally friendly habits and the gap between caring about the environment and actual consumption behaviors is beginning to shrink. According to a study made by Kantar, 1 in 5 shoppers say they have adopted more sustainable habits since the beginning of the pandemic in March 2020. 

This is incredibly encouraging, considering that 90% of an electronic device’s carbon footprint comes from the manufacturing process. Extending the life of our smartphones and other electronics has a significant impact on slowing climate change.

Customer experience is everything: Back Market to continue investing heavily in overall quality and a seamless consumer experience.

In addition to the highest quality products, Back Market also offers fast shipping and exceptional customer service. 

"We take e-commerce best practice a step further with the premium quality of our products and by offering customers a streamlined discovery experience ensuring that they are immediately directed to top-performing sellers on our marketplace for any specific device they are seeking. Seller quality is monitored across 20+ metrics" said Mr. Hug de Larauze.

Back Market to continue bolstering its position in the UK and throughout Europe

Back Market was one of the first refurbished electronics marketplaces in Europe and has since established its leading position in this market. In Germany, the company will invest €60 million for operations and want to triple the size of the German team.

With 13 European countries already open, the company will pursue to invest massively there to secure its position in those strategic markets, while continuing its ambitious expansion plans in Europe and beyond.

Going circular: tech that lasts (just about) forever is key

Although there are certainly bigger issues at hand, it’s important to remember that electronics are an important piece of the environmental puzzle.

E-waste is the fastest growing solid-waste stream globally, and the most toxic. 82.6% of e-waste won’t be recycled correctly largely because today’s infrastructures simply can’t keep up with the rapid pace of over-manufacturing. 

Reusing, repairing, and refurbishing tech for as long as possible minimizes the need to buy brand new devices. And it’s something that everyone can do to help reduce the overall environmental footprint that comes from electronics, without more effort or expense. 

With more than 6 million customers worldwide, Back Market is catalyzing a fundamental shift in consumer behavior and driving the conversation around how people consume technology, one expertly renewed device of tech at a time.