NEW YORK, January 12, 2022 - Today, Back Market closed an investment round of $510 million, following a $335 million Series D round in May 2021, bringing total investment to more than $1 billion since the company was founded in 2014. The round, which values Back Market at $5.7 billion, was led by new investor, Sprints Capital, with continued support from Back Market’s existing investors.
The Series E funding cements Back Market’s position as a leading refurbished electronics marketplace, with more than 6 million customers worldwide. It allows the company to further deliver on its mission to make circular tech mainstream and build on the growing preference among consumers for more sustainable options in how they purchase electronics. Back Market’s co-founder and CEO, Thibaud Hug de Larauze, explains:
“Our goal is to make refurbished electronics the first choice for tech purchases. We expect to see a similar development in the electronics market as we have witnessed in the pre-owned car market in America, where consumer confidence in buying second-hand vehicles has resulted in sales that have increased twofold compared to new car sales. 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.”
In line with its core mission: Back Market is determined to grow the demand for refurbished electronics by delivering an experience superior to buying new.
Back Market will use the funds to continue investing heavily in ensuring like-new product quality and delivering a world class customer experience, with the goal of expanding its global customer base.
“Renewed electronics are more affordable and are better for the environment than new electronics. Now that devices on Back Market have an average failure rate of about 4%, we are in a very attractive position as a sustainable and reliable alternative to buying new. The unofficial failure rate of new devices is currently at 3% and we are continuously improving our quality control processes to approach the same level of reliability,” said Mr. Hug de Larauze.
In addition to quality control, Back Market also emphasizes the importance of the customer shopping and buying experience. Lauren Benton, General Manager of Back Market USA says:
“We are taking e-commerce best practices a step further 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. We also offer a like-new purchasing experience with a 1-year warranty, 30 day money back guarantee and free standard shipping with every item."
Back Market doubles down on the US market
To meet the US market’s rapidly growing appetite for sustainable tech, the US team is expected to more than double in size, bringing in new talent with proven expertise in product design, supply, innovation, software development, merchandising as well as award-winning creatives.
Going circular: tech that lasts (just about) forever is key
Back Market’s fight to establish the circular economy is also a fight against electronic waste. E-waste is the fastest growing solid-waste stream, far outpacing, by an order of magnitude, other sources such as fast fashion. It is also the most toxic. 82.6%* of e-waste will not be properly recycled 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. 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 at a time.
Henrik Persson, Sprints Capital’s Managing Partner: “Consumer demand for sustainable shopping is a trend that Sprints has been investing in for over a decade. By prolonging the lifetime of millions of consumer electronics devices and providing low-cost access to the best products, Back Market changes the world for the better. The company is well positioned to become the global number one alternative to new tech.”
Yann Du Rusquec, Eurazeo's Managing Partner: “As strong believers in the circular economy and supporters of Back Market’s mission to act against overconsumption, we are delighted to participate in this new fundraising. We believe a massive opportunity lies ahead of the company and we have built great confidence in the ability of the team to execute on it.”
Chris Caulkin, General Atlantic Managing Director, Head of Technology for EMEA and member of the Back Market Board of Directors: “As the circular economy becomes an increasingly attractive option for consumers internationally, Back Market continues to grow and transform the global refurbished electronics market. General Atlantic has strong conviction in Back Market’s mission to make purchasing tech hardware a more sustainable, seamless experience for customers, and we are thrilled to continue our partnership with the impressive team.”
Shalini Rao, Generation Investment Management’s Growth Equity Partner: “Back Market continues to grow from strength to strength, emerging as a true leader in the sustainable consumer electronics market. We are inspired by the company’s efforts to make it better for consumers to buy used electronics over new ones. We believe Back Market’s focus on this goal will set the company apart from others in the space, in addition to making sustainable consumption habits mainstream.”