Refurbed Raises $54M Series B - European Refurbished Electronics

Refurbed Secures $54 Million Series B Funding

Refurbed, a prominent European online marketplace specializing in refurbished electronics, has successfully closed a $54 million Series B funding round. This follows a $17 million Series A investment received the previous year.

Investment Details

Evli Growth Partners and Almaz Capital spearheaded the current funding round. Existing investors, including Speedinvest, Bonsai Partners, and All Iron Ventures, also participated.

A diverse group of new investors joined the round, comprising Hermes GPE, C4 Ventures, SevenVentures, Alpha Associates, Monkfish Equity (the founders of Trivago), Kreos, Expon Capital, Isomer Capital, and Creas Impact Fund.

Refurbed's Business Model

Refurbed operates as an online platform for electronics that have undergone rigorous testing and renewal processes. These refurbished items are typically offered at a price point approximately 40% lower than their brand-new counterparts.

Customers benefit from a 12-month warranty accompanying each purchase, ensuring peace of mind. The company reported a threefold growth in 2020, achieving a Gross Merchandise Volume (GMV) exceeding €100 million.

Geographic Presence and Expansion Plans

Currently, Refurbed serves customers in Germany, Austria, Ireland, France, Italy, and Poland. The company intends to broaden its reach by launching operations in three additional countries before the close of 2021.

Industry Perspective

Riku Asikainen of Evli Growth Partners highlighted Refurbed’s contribution to a sustainable, circular economy, recognizing the significant potential within their business model.

Company Strategy

According to Peter Windischhofer, co-founder of Refurbed, the platform distinguishes itself through competitive pricing and an extensive product selection, with a strong emphasis on product quality.

The focus is on offering products that appear and function as new, fostering customer satisfaction and encouraging positive word-of-mouth referrals. This approach cultivates a sense of pride among consumers choosing refurbished options.

Marketplace Structure

Refurbed’s marketplace currently features 130 refurbishers offering their products to a wide customer base.

Competitive Landscape

The refurbished electronics market includes other key players such as Back Market (which has raised €48 million), Swappa (based in the U.S.), and Amazon Renew. Refurbed also faces competition from Rebuy in Germany and Swapbee in Finland.