Sprints Capital Leads Investment in Back Market, Now Valued at $5.7bn

Jan 12, 2022 | News

Back Market closed an investment round of $510m, following a $335m Series D round in May 2021, bringing total investment to more than $1bn since the company was founded in 2014. The round, which values Back Market at $5.7bn, 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.”

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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.

Source: Press Release

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