Swappie eyes market expansion in Ireland as it raises €108m

Refurbished iPhone provider Swappie has raised €108 million in a Series C funding round, as it seeks to expand its business in Europe.

The funding round was led by growth equity firm Verdane, along with existing investors Lifeline Ventures, Inventure, Reaktor Ventures and TESI.

The Series C round brings the total amount raised by the company to €149 million. Its first funding round was in 2018, and in June 2020, Swappie announced a Series B round of €35.8 million, which coincided with its push into a number of European markets.

Market

The Finland-based company, which launched in Ireland in 2020, has earmarked the market here for investment, deepening ties with local Irish partners, and improving customer experience.

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Swappie buys, refurbishes and sells iPhones direct to consumers. It manages the entire process, from testing and repairing used handsets, to selling the refurbished devices, with at least a 12-month warranty.

"We've now raised funding pretty much annually," said Sami Marttinen, co-founder and chief executive of Swappie. "We've opened 12 new countries since March 2020. We knew that with more money we could invest in our vision, and the faster we could grow and achieve it."

The funding will be used to bolster its European expansion and accelerate growth of the category. Figures cited by the company claim the refurbished market is set to grow at an annual growth rate of 10.23 per cent between 2022 and 2027, with consumers becoming increasingly eco-conscious and reputable refurbished options available to them.

“We will be accelerating the category as a whole, first of all, so we’ll be educating consumers about the benefits of buying a refurbished phone from a reliable player, and that it can be a better option than new devices,” Mr Marttinen said.

Smartphones

“Secondly, it will be about expanding into Europe even further, localising the category further. So the plan is to focus on the markets where we are - out of which 12 countries opened through Covid - and then we will also expand our production footprint, and further develop the team.”

Swappie currently employs 1,200 people, a number it expects to climb to 2,200 by the end of the year.

Sales at the company grew by more than 220 per cent in 2020 at €97 million, compared to €31 million the year before. It has sold over 1 million refurbished smartphones to date.

"As people and companies progressively move towards a more sustainable lifestyle, the iPhone refurbishment and re-commerce space has grown considerably, and with it Swappie, which has demonstrated the potential to become Europe's market leader in refurbished smartphones," said Janne Holmia, Partner at Verdane.