Smartphones and other electronics have been getting more and more advanced over the past few years, but as a result they’ve also been getting more expensive. This upward trend in prices has plenty of people turning to refurbished devices as a way to save money and still get the same product as everyone else.
French startup Back Market has tried to meet this demand by creating an online marketplace for people to buy refurbished devices — from phones to tablets, monitors, laptops and more. The company lists products from over 1,000 certified professional sellers in order to ensure that devices are in top shape despite being pre-owned. It also offers a minimum 12-month warranty with each product.
Now the company is looking to expand its reach globally, thanks to a $120 million investment from Goldman Sachs, Aglae Ventures and Eurazeo Growth.
Back Market expanded to the United States in 2018 and opened its first American office in Brooklyn. Since then, the company has been focusing on growing its U.S. presence to meet demand here. The company recently moved from Williamsburg to a larger 5,000-square-foot space in Bushwick and plans to hire. It has about 25 employees in its Brooklyn office and plans to add another 20 to 50 employees by the end of the year. These hires will be for positions in sales, marketing and engineering, as well as to grow its quality team as part of a push to invest in its quality control practices.
The company currently employs about 280 people across its three offices in Brooklyn, Paris and Bordeaux. It also operates in France, Spain, Germany, Italy, Belgium, the United Kingdom and Austria. Some of the new funding will go toward expansion efforts in Europe as well.
“This fundraising is a signal of maturity, not only for Back Market, but also for the rapidly expanding refurbished industry. We have created a global brand and established a name that is not only synonymous with ‘refurbished’ but also with ‘quality,’” CEO Thibaud Hug de Larauze said in a statement. “With this round of funding, we are optimistic that we can reinforce our leadership in this market and have a lasting positive impact on consumers’ perceptions about refurbished devices.”
