According to TechCrunch, the funding round values the company at USD 3.2 billion. Back Market will be using the funding to expand into new markets.
Back Market provides another alternative to people who don’t want to pay full price for a device that might still be in good condition and new to the user, if not altogether new itself. Therefore, the company is part of a 'circular economy', where people are recycling items back into the sales market to extend their life.
Consumers can buy refurbished smartphones at different price points, with the stock ranging from old models through to recently released devices. Prices vary depending on the model and the condition of the device. Other stock includes laptops, tablets, headphones, gaming consoles, and other gadgets and consumer electronics.
Furthermore, Back Market doesn’t refurbish devices directly. Instead, third-party companies act as the sourcing partners for Back Market. They list their inventory on the marketplace and find customers more easily. Overall, 1,500 companies sell devices on the platform.
The company also invests heavily in merchant services, parts sourcing, and quality control. Although Back Market originally started in Europe, it is now active in 13 different markets including the US and Japan, with plans to launch in Canada, Greece, Sweden, and Slovakia in the future, TechCrunch stated.
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