Based out of Helsinki, Swappie is the online store selling refurbished smartphones that intends to give people a way to upgrade their phones that is high quality, affordable, and environmentally friendly. Recently, the Finnish company has secured $40.6 million (€35.8 million) Series B funding round.
Sami Marttinen, CEO and co-founder of Swappie, said: “As consumers become more aware of the environmental impact that their purchasing decisions have, we expect to see far greater demand for high quality refurbished smartphones. Because we refurbish every device ourselves, in our own factory, we control the whole value chain. This means we can deliver the highest quality devices, under warranty, for much less than the cost of a new phone. We’ve already seen fantastic demand for Swappie and we are thrilled to be announcing today’s investment, which will allow us to accelerate our international expansion and make the circular smartphone economy truly mainstream across Europe.”
Raised €42.5M till date!
Various investors including TESI and other existing investors Lifeline Ventures, Reaktor Ventures, and Inventure participated in the round. To date, the online platform has raised $48 million (€42.5 million). As per the company claims, this funding will be used to accelerate Swappie’s international expansion and to support the company’s rapid growth.
Tony Nysten, Investment Manager at TESI, added: “We believe there is a huge growth opportunity for Swappie. The smartphone market in Europe is worth over €100 billion but used or refurbished phones currently make up just over 10% of that, and only one in four pre-owned phones are currently re-sold. Through its rapid growth to date, Swappie has proven its ability to not just grow market share within the refurbished market, but to expand the size of the category overall. The business has enormous potential and we are delighted to be participating in this funding round to support Sami, Jiri, and the rest of the team as they enter the next phase of Swappie’s sustainable growth.”
Empowering individuals to make sustainable choices!
With more phones than people in the world today, empowering individuals to make sustainable choices when buying a smartphone is more important than ever. Unfortunately, reliable and responsible players who securely offer this option are currently few and far between and research shows that less than 1% of smartphones are recycled properly.
By refurbishing iPhones to the highest standards using the latest technology, Swappie is reducing environmental waste and offering consumers a safe and secure way to get connected for less. The company operates its own refurbishment factory in the Nordics and sells directly to consumers via its online store. All Swappie devices are fully inspected by Swappie’s professional technicians and every phone sold comes with a 12-month Swappie Warranty.
From 2018 to 2019, Swappie saw its revenues quadruple to over $35 million in net revenue in 2019. The company’s growth has continued to accelerate during the ongoing COVID-19 pandemic as consumers have shifted to buying more online: Swappie recorded a fivefold increase in net revenue growth in April and May 2020 compared to the same period last year.
Currently operating in Finland, Sweden, Denmark, and Italy, Swappie plans to use its Series B funding to drive rapid expansion across Europe, starting with launches in Germany, Ireland, Portugal, and the Netherlands this summer.
From a team of two in 2017, Swappie has grown to a diverse team of over 260 from 31 nationalities and plans to hire another 400 people across Europe in the next 12 months.
Main image credits: Swappie