If you've been trying to sell your old smartphone on a home improvement site, chances are you've finished with a dozen browser tabs comparing prices. The French start-up Back Market is taking advantage of this fragmented industry to create a market and regroup all renovators on a single online platform.
The startup has just amassed $ 48 million (41 million euros). Groupe Arnault, Eurazeo, Aglae Ventures and Daphni participated in the financing round today.
In May, the company told me that she was working with more than 270 factories. Back Market has generated more than $ 110 million in gross merchandise volume over the last three years. The service is now available in France, Germany, Spain, Belgium and Italy. The company has just expanded to the United States
"Before, the renovation was just a thing for tech savvy people and tech bloggers," said co-founder and creative director Vianney Vaute. "With Back Market, it's becoming a traditional alternative."
Working with multiple factories is also a competitive advantage in pricing, failure rates, and quality assurance. Back Market has an overview on the industry and can choose to work with certain partners and leave underperforming behind. The startup has to build a brand that consumers can trust.
While smartphones and laptops are the most prominent products on the homepage, Back Market also accepts game consoles, televisions, headsets, coffee machines and more. Back Market also sells refurbished Apple products by Apple itself.
Now that smartphones have become a mature market, many customers are not looking for bright new devices. Some customers may be perfectly satisfied with a phone released last year or two years ago. This represents an opportunity for Back Market and the renovation industry as a whole.