Finland-based company Swappie has reached 171 million dollars in total funding after receiving 124 million dollars in the Series C round to expand its business in upgrading smartphones with its eco-friendly attitude. The last was round led by Verdane with the participation of Lifeline Ventures, Inventure, Reaktor Ventures, TESI and Telia Ventures.
In June 2020, the company gathered 40.6 million dollars in the Series B funding round. Now, Swappie has a chance to improve its equipment while growing into the industry. The goal is also to expand the team from 1,200 to 2,200 by the end of 2022.
Swappie Raises $ 124 Million in Funding – Accelerates Change in Smartphone Consumption and Growth in Europe
Swappie, a Finnish leader in the sale of refurbished iPhones, has completed its largest round of financing to date. The round was led by private equity investor Verdane. Swappie intends to use the funding to promote the circular economy of smartphones among the general public.
Swappie, a leading online marketplace for refurbished smartphones, has said it has raised $ 124 million (€ 108 million) in funding for the Series C round. The round was led by Verdane, a private equity investor specializing in technology-driven, sustainable companies, as well as current investors Lifeline Ventures, Inventure, Reaktor Ventures, TESI and Telia Ventures. The round was also supported by external financier Danske Bank Growth.
Swaps make it easier than ever for consumers to make more environmentally sustainable choices. The company is transforming the used electronics market by offering the general public the opportunity to participate and benefit from the circular economy of smartphones. The total market for used and refurbished smartphones is projected to grow at a rate of 10.23% from 2022 to 2027.
The previous Series B round generated $ 40.6 million (€ 35.8 million) in funding for Swappie in June 2020. The latest round of funding raises Swappie’s total funding to more than $ 171 million (€ 149 million). With the financing, Swappie will be able to continue to meet the growing consumer demand for serviced electronics.
Swappie is a growth company founded in Finland that buys, refurbishes and sells iPhones and ensures their high quality by managing the entire value chain. The funds raised in the financing round will be used for enlargement in Europe and to boost the growth of the industry as a whole. Swappie aims to be the European leader in refurbished smartphones and grow in the 15 European countries where it currently operates – especially Italy and Germany. Swappie has nearly doubled its market presence since the summer, from 8 to 15 countries.
A growth company looking for strong growth will further improve the availability of refurbished equipment while building confidence in the entire industry. The goal is also to increase the current number of talented and work-valued employees from 1,200 to 2,200 by the end of 2022.
A positive effect is sought by enabling the circular economy of smartphones for the masses
Sustainability and increased awareness of the environmental impact of e-waste are the main reasons for many Swappie customers to buy a refurbished phone. The strong growth in consumer demand has put Swappie at the forefront of a new wave of European growth companies operating in technology and emphasizing relevance.
Smartphones are projected to emit a total of 146 million tonnes of CO2 in 2022. 83 percent of emissions come from the manufacture, transportation, and first year use of 1.4 billion new smartphones. Extending the use of smartphones by one extra year would reduce CO2 emissions by more than 2 million tonnes. The figure reflects the environmental impact of Swappie as it offers its customers this opportunity.
Swappie uses the latest technology in its maintenance and has focused its expertise exclusively on iPhones. In this way, it is able to solve even difficult problems with devices and repair phones that other companies do not service. This extends the life of the phones. Swappie’s own factories in Finland and Estonia ensure the high quality of the refurbishment and the intelligent use of materials, which means less waste is generated.
Assurance of trust and quality throughout the value chain
Since the company was founded, Swappie’s mission has been to mainstream refurbished phones to make smartphone renewal possible in a high-quality, affordable and environmentally friendly manner.
Swappie’s operations are unique: Many other marketplace companies have outsourced sales to their partners, but Swappie manages the entire value chain and maintenance process, from testing and refurbishing used cell phones to selling refurbished equipment to consumers.
Swappie adheres to high quality standards in the refurbishment of its phones and utilizes the latest technology in its processes. Phones refurbished by swapps are often as durable and sometimes even more durable than new models. The customer path is the same as when buying a new phone. It includes direct customer support, fast delivery options and a Swappie warranty of at least 12 months.
“With the investment, Swappie plans to strengthen its leadership in the refurbished iPhone market in Europe. Our main goal is to accelerate growth in the current market areas in Europe and to meet the growing demand in the next few years by expanding further, ”says Sami Marttinen, Swappie’s founder and CEO.
“People today are looking for new ways to reduce their carbon footprint. Choosing the right smartphone is one way to make an impact. After all, we all want the best possible technology, but it doesn’t always have to cost malt, ”Marttinen continues.
“We believe Swappie will be able to increase consumer awareness and confidence throughout the industry. This is achieved through standardized quality assurance and keeping the flag of sustainable development high, so that a refurbished smartphone is as natural a purchase as a used car, ”Marttinen adds.
“The growing popularity of more sustainable choices among both consumers and businesses has meant significant growth in the refurbished iPhone market. This has also brought growth to Swappie, which has shown its potential to become the European market leader in refurbished smartphones. Verdane is very excited about the collaboration. We can offer our expertise in building a sustainable digital consumer business, which supports our vision of a more resource-efficient future for European consumers, ”says Janne Holmia , a partner in Verdane.
“The market opportunities for refurbished smartphones are huge. The European smartphone market is worth a total of around € 100 billion. Used or refurbished phones currently make up only 10 percent of it. Only 25 percent of all used phones go on sale, so there is huge growth potential in the industry. We see this as an excellent opportunity for Swappie to strengthen our operations in Europe, ”continues Emma Lehikoinen , Swappie’s Chief Operating Officer.
Swappie has grown very fast in recent years. Net sales increased by more than 220 percent in 2020 to $ 110 million (€ 97 million), compared to $ 34 million (€ 31 million) in 2019. During the pandemic, the company has expanded to 12 countries and most of them, e.g. In Finland, Sweden and Italy, the market leader in refurbished smartphones.
To date, the company has sold more than a million refurbished smartphones. The awareness of refurbished devices among consumers is growing, as is the awareness of the environmental impact of device choices. Swappie is in a unique position to offer a cheaper and more environmentally friendly way to compromise on new phones.