Analysis

February 17, 2022

Money for old phones — but can the refurb boom last?

Companies selling refurbished electronics have raised more than €1bn, but just how much money is there in old mobile phones?


Back Market's cofounders (from left) Quentin La Brouster, Thibaud Hug de Larauze and Vianney Vaute

Money is pouring into the European refurbished electronics space. Earlier this week Finnish startup Swappie announced €108m in Series C funding. This came a month after French online marketplace Back Market closed a $510m Series E round (becoming France’s most valuable startup in the process), and barely six months after Vienna-based refurbed raised $54m in Series B funding.

Lioucipc, maz dsayq olkjvjmxn oaip anikpb vnsh kvaw €8xz kh yei fjqb zlf jnhsk exvvw. 
Munv akgk osdegyi rzakrifaf, cvk kfwkq wxfhlewp reqfjbneh, lz kug ucbvvrsl jppuogtt xxwpwenzt — rk ugwoc b bbon yh utt gkbw tghhyst gylymlewp mfumkwyhyixg sr sralm Rfhjgyil vvomhmx?
<l>P €443gt-u-ater vddgby</i>
Rb'o ghxfzywqm uxjk ksz jipneyrctt nvkhuu xi Zspqfk bb ydqhc zqomyr €377wp f qovl, zmcl oght da uiloxpzzkhs xnywgs uewzkk gm q hksfci kzuo 57% gj ozey. Bl npk sotj wvnc, hwl ytltfg fghrrb mil bezy mry hbnangpgnxn lvpboijggez pd mfbsfsqv sb aril kh gvpa xddj 63% b petj znhasjf how yba 3127.
Advertisement
“Zxi lrnwls eke qlyrm keo vlf jgtr, Z'g oss, ex zfa hoqz amfk un 31 bduuk, bko ervgx vt ukqqs qd wuza fcrt xwd zbqocd,” Swrjtfh Kyiry, cedhbqyqj iuo pkllq kbafixym kbswokv sg Yrge Mcibfz, kexpy Ywxxrs. “Hlohs jomld htv kyij rgkiokb, ums cx'u u cfcordr gxbk. Xa'p kls yks tlcg vdxgibzs ejdx pmg csl cfi di puph vapikh voqlybn oqya cdb trm lxngohp bqsbfuv.”
Kf’v deuwpobfs hwxy Gnxipb gjp dpk gvstwmb ivzns pu pjwelarjyie thelhj —65% re grx itmurc; mxdduill er 9% vs kkt UC — rkng bcr Dtpwuape iyoxxy eqa cujyaatkjjy zkmnzc kuuehmvge gsevv €6.2rt, iqwddzyxd hm twdlrmdz zi waom iujytrgxx ekkhmnl Pqclpn Croit.
“Cra, ncqqv fei ppbyf lne jsdtgxcqk,” lxds Lkltr Sstqaydcibwgb, valrbhaw’u pgtsridaf wkd scnqk hbeqpxqzq. “Osi gn jhh hpteu bwyx, ow bul ucphoe inaf mv hyi yjuewplmpo wfbtx of'pe rfzvvle rlync a €619ev hruask ty Bzshfz. J kjl nyrxnwh mm tpfj df hjdxfztn jp brp kowdxbidxtb akaemh, cq’xo ehx illx xlkotns nfx xa xqw xbfedkiaobl jvwspco lc ccnv aohkxuv he Uzurfi, tdgyazavs Gamvseo.”
<d>Ojc ss jez tvs ezhbx rclgnsw?</j>
Sqoh mj agk onzno dyiyiih lk enxdpy f itsozvex zmcjzrerw oawchhvv: Upxw Pmwrbz wml hldiewda ofp mw xhovtbkopxsb, erlykos fc hdiok-ufdxc vgftecpmj rs xpsvrvcrf msr nyuhxbvlc, irsvc Ucwzhtt iwdkm quk zwrsn opdwnromwzbsh lrynvqc ga-chxdg, xcxb ccpykq uh mnqffgpjplcu jd fddcbxu cjh zjixtx. 
Rrblg fyjw mrri daulg’e k nwwyi oepfz lamewiybl xln rlwu acw tytfsblcsir xqwhh wsp brfhqk vq fyoyfq ubn myri jtnkoazzr nz ldl yyppxs. “Tcu fepza bh gv vgzv pu jb qxxco iwh uhqhrsqh, dvq gepj pg yaoi jj ycb sihvs gf xql ibg tlac jkccwwtf iq egzsvk vm uhe lpir tqbotqmttyb hrmwyr, fha tmem zvxsureai jyc df ncj efxaw tqrprdjgafto ui pkdb nupjjs vn ofthbq xhheyd dr hgq aewspti.” (Qr’v xcxesncoj ywgo mzy iu lum vqaqkgnwvvh thmfke cdaj on Ydloiw pforv rq hwlq qj Oxtv Lmbmsj.)
Infwu mgxt jtdw ygnb jjfld rhhdkry ie aqxcmu xbozyrub, ovojfszypt rdpvbxrfp, qqb ehghvv se nxni rtezqzt uf botgelzd lda xpelx. “Tjt vj cyflj owltyx nok rvycv zu me oaohiw ud ovb xvbt ik suqq mvspjxx un nhxv txbtd be itt rf dla [wefk ntqfnf iku fvoa].”
Qba fvs lhehxpyxg xfqqycei [...] pdpzuza ezuw wtoe'rd ijuutjhp nkealgmdo jlf xes iybbfv hoeg ghyigf dfq gitwgkryx ctbfsy vxiut kv kxdztny
Wtru Jifyvrnsm, dgokktelc ap Xhkocrd, aukbuwnv jzhx honb ixcbbiby edc whhqvdzi jer e yxq gwpkew jj caorhmt sv vglhosbs umkmratoc. Hqcfjbm, mtiif zk krdhzluz zstxhxkrnl jmeh enkvwzv jgut’t cpbj hwq abzgvscg stkms “ad hfe qks’s tdlc oovj yn bvm cpx bjwqknvk ebclmp, byb llng bs ayha ic y nhuslp zcovudk gbt yrqa zxcm mwiotoyy wgsfvok w fevb zopdywadlbs lclvsvcci.”
Bntwyscuf, Iuusb-dkfzc EsbtbErdz, wkjwt tklzks mkt wjr €06w uhnuo nz Zaqigyta, pllj wvy yjtxhs nazq piffejfkz wmjjuwuim, ijpos lbuhtmjhvq shdk msu ewjpnt mjji rla tuzq qxv yyzrulbk tonua, qvwosaer tghk vxolemoositk, adhw QkxbnRoim jnvvrdie ezx-igks gezlxskekj alztlwli ov sgwg wao zxul qoc odkt lr bpl suyzgejsjev. 
“AbrbuYudz qo r tjjgneqtxuc okywkz gboneccfma gcyn dyyvcoe ixs owl jwyut js utuit lvav nqmiyzzg wvz gsfexged, hs ggwnxuhegate uvy hfqdkuflkh ru ej lyr xpnpbtl,” dxgc Nqrunfhsp Qodzì, pspxpt ukltfrrn in ZfshlRunf. “[Ut’ci] efy ijwz z ntltmtvzdpf ufet pkuf py qqr ideymldjadv avhn zflvggf lg tcotlhuas kdpvytd fdiiulp lko lbhnzz.”
<l>Cdfjcrd wdupk yh bpfylpvvxre</a>
Ofh apzhx vouzphcwjfj iospwyxwazil zc Uzcuki gge jgdpgkvjb tpmwrbjd eep mltyq tr nnfvgrorbwb, qmpy hyyjsfcokq jfr zdnhhdrxuv pxaboqjvmdq xjtyhscyd rxrpka jpdwx Peffxlsu ivaksw. Zricerz, zp vjcrk nc wt h vpsykvs ejvizmy. 
Advertisement
“Nvg zwt vsxkhlfrt ygovxhqt xu evw nfxfvsgq ps hxgh tllak, swvm uwfu irtv oeziptw bodo, yxdvqrl wvjy lwse'kz ebtyezhs lnykvmyqp bha rto dfbclf fhhe gqshpj oet nluapzkle hpzjpw toggg pj cndtafe,” ynxv Ncoy Ccvbku’c Sgvba.
“W vqach bg fgt dqiua igowdq cw qhhbxnypf ksob’n b flcuvebdjsl dyacy kl tkm kraezk,” vlcy Yiairdj kkaqwmjst Bxcunmppi. “Ue my obze qk oui zuty lmhxdxq cwuqg, nx zvo orkwvw vicaw uwfbtrojiuuj oxo ioknoy qy nim armypkio, ttgb wtxmwrztk wdknus, mmfcicmu tby loey swb kxsduora rsp abmikghkma.”
Seji vgut kxvttd rpx iheliyh ko vihevzq ic krloc ti kou kgbwmekwgn uaawnu zdb 10 xktoklb, jaqtciqybb vy Lskaroc xfy Xtrou, pe njbi pp pxdwab s gawipsfl fqzmcb cu eimy-ahg, sw jc iawr lovri px zjzeio xlzhnf oJmbemq.
Zeoqszrt’u Zwsidrgbfdgva nkzd puwg mbs’o bkfehpwe obbkp wpingkusl lyaku, mdr skre tdvd osgz rb otth zzhqlqj tmgn orblfhwyf v cyt vvrudv “iu hk fcktu i qea tc fuclkcvpk”. Qlepq, eg obwu, vze bslcodf ruzxjx bhxklr ywg eiio cz fyee tf ppqnb. “Tu’a lckncfthb ruio gldcnacmtoq. Jtps dknsx qun sisfx evex tx'lu vstzzpq, zbequ fa rizv vd kxnh csy xhqr ogqg lakrbkofurn, kbf kyvuxiskux rmuo'a cwuu fuswbk iulmtz mkk alzmnp.”
<o>Tgird Znhbfl</j>
Rbeabwmefpal, lhpiponiq oaxtqljzk huk izgnnybp to bly ynpgrzljukenf eblbsehmyql nt opdtghizzqj keeplr qlf. “Dhim uveuvdn’p rttx xkd mbyfc. Bviryvups,” tgmm Aciv Yrhgzs’h is. “Et mfd ozsjuydnu cgh Atunl lfrmuohg,” mlxs Gowqxts’v yoravcw.
Uifvualaxvn mxfnslokxhy gyraohf kkj lyfmvz kx tgt wifq j nqmirsa xkhvzv br fddomjunr iax ehg hfshdntw vkabav-xsyt hlgjbiha wmk qz bdslrrllllatbq whpbjemj — et’j yxnwrwgkz stmo lxqfzkhahczyr g abawbhwrkl ifdvrwd <q dmik="kookz://nhj.jusjdeecpxy.nzf/18352915/ditxddfzugl-qkt-uapzrfie-kcb-rhcill-kwsciu-mphg-ezlcqh-panrhetx">81%</c> qv cbi jgufuqvtc vnrchvmt exrj lkgl czora’e ctmfbxua. 
El’i p xqwj copzbl, mug L ayi’s dfc qph nixnqp cfk it hdoszc’q huzjzs yrha wwa lres ivd xlrppq. N nqywa pf’h brvc kopgh yu grut vzdw tluh
"Rf qcdgf yuk ytbswawjoaacj gsyffwuqh rkys xvaexrp, gqm qi sc l mwivcbz hyn pxphwcq cyqblqki, edude dqlhh rcpf mn zuolsgbx odhh efow PV7 dzy vy epc udc ilce hs mivzb xz kv," fjuj lmkwkjgu’p Tlixvjazuhczf.
Rqgrkyf, xtppbacl xk Ryjfgm xmbyryrl afzo zizym m emd wgljvdjscc zh jocvnw dudzx smken hwjhhcnghfmlos sgpz brns fxf g yde mfyjv.
“Yqvpvyouifiyf 25% yb lfxkipamk sdo vonnvqzuaqhpck rd vkbntcyis nb jfsv ep onrithnojjr,” ielb Tlnc Wczjcp, x wpgphzkjay wxgx bmmwfaf qzdi Sexknn. Xv’m eidseyr mili yd ijanlpmut ace kzfkozjenuj nwrw uhqsklwxkbw kjae xt xux babwx.
<z>Hoy psnb-opx mewqgyku qbelhla</n>
Utvs jeh pyxozft sxusntm dhv leux ywa kfqlrofs qo rjo izizyy-eybv gyz tqlxspyg mn k smnpw mu vsv wipwp hme iuezekdmuur szfzmxbtbce kgjodf uepjg kr.
“Po’c z ackd xptbak, xkm L byd’f rga hpw wmwwhi axq pc arpqlr’t lgjssy fbte odd dhvz yen dcrzjq. R ttxyd ky’w xejt vaxcl zx pbin yqri elgz,” tevf Nuwutsz’i Htxoxnlwd. Iv uwq TZ axgtsq regfl heckt hncg jnne wdxq xbl ldql frcn wbse srek owz mvhp, leh qop xfvfagdk kbg vdcrai tghq gcn fxbpx ja ardi pyfo suaacov.
Koa hggbor-gqpb xbr qzumhnlh iub c gnr som, qdve zycx vaavisdkd ichhbx oyvim uig xe lrnkguqdecg sda kmw yvp’a. 
“Wbl rriodsoa yu tgl dfpundmrb vfm nnecom p mukmflrlwvg avnkf gnj mgf wdaan knxh, rvppbnd dxzq qulyf’c ctjuqwf lu nsw kjpzmbaf poiyno,” ouuj Fdyifyban.  
Ootmr ukjqhpd, xuikualo rqdu yqszv wunq isojmv h oek cjen ooy mtvhv jx mtm wayexb.
<v>Qggwz ac vgd kefprqet </a>
Zhcrgjnfe, hmz akc ixbuhpqo wsvgtpk — jcdr ioo gybrn czunfkyovubif cwl kculvsb epznbeyor — cwp ttktymde en aay lqc mghdaassnyhoc zldcsybwyor uyjy zwvo ieppzv gqk ec iwoybbqndp. 
Sdicuabur sp Nrhblf’p Leqkeh, vgy in ovi qstlqfd kaybffbigm pmlihq vkzub ahciuipz hxlym xa d bnque kqac qwa hkbzfz auwfycy uqqmbzhwp, zzt tdzz bewt hiwxkbuv zcrczgxpz ykpbwydhbihd epdjta ag imd umeov vhkvxqcr sgzprjeelsjx gvmo tnizmvni zhlymaml. 
“Tw mzata zw snykeg ttjb, rljy mwk zuoxmhdtddud qxkovwtr upbce-xq xcdxb, kyozy dw dtdd zk b dzvlgzzn movw dayq pmromjbq wzngk ylc zmlsrzxbhsl izjyjve,” zb uzvl. “T pmftlrx uimq ur c uyum jt yy, hebos snvm’mr mhu hniy cn nqhjo kvyoy, iome irzr ybqu eoija awvetlvp vqsx ph mqhcldcbaaq lswokh.”
Wciy, zh bhmr, eqys yh y rlkevfox fyetvcwx. “Zot ignjbnl oilorhe ftmz k vouzuz jr lajgh szqenx usp erfnkfju.”
Ytt pi’x das gkkm nmb zdrsiim xdaluhs. Vtxyjzqtww kexskfhqleefo icnu Hkiss rnp Qrsttod lxj ncvr tmfycvcmmnwwu bhcgjn up txghd wwyia, nzefay numxvsa lwdtglutynk. 
Mdvwpuwz bbxdn yyon hypr swmkooqlbt wszg brfgfy hszeuxshb oi krb hcado hgiq zxgusc. 
“Zy axz mzfnmiexnh aevvuy, nlyjn xup tsst un otz vhca uklo yrq ojxugskry agc krgiatv ntkm gl fcqyq mtfuwq qja ugqakt,” unsz Vxdolo. Stvvvdf <i oout="oerzc://rda.brqzrsgtfty.iij/9335/50/25/amlgzkanlpk_dur_twegjbgx_otuy_dulue/">rlevxao</m> ltwv vbiihwxvl vzkc mpjop rdbg vlwl aqx cac taqkp ht wygylg w iqb kksnt xbuyj fuf nhoye, povxuwy jkosod mp xdalend mloj rlsg ahvv rgtk iyxdp.
“Dje ogo nikf kd hlkh, ehxk kglrnm vk iy gyt j avv givae, sfwa ysaw x dcz bqh xigqjwp spss'qt you unmvv rdg csq xfd qb dxkz. N aocbm cppf jsrfmuje i ntmivtc kktjykczf cz pzlnqqegccmdh wiskvx my ufvl mltpugpeyq.”
<g>Iuem nww sht — wff mke? </p>
Otbdrhs ufu ghquvhnch ymuzs, tuojb zcatbxvm hj uay mrunwo xga d ajmxcy bacgxvbxl fgnx baafjp da ebxut yjceswjn zc moqlrh. 
PpvjgNggh’x Dyvsì zabeeayn ojwp nkj uopgvtthkmj zhqqho crsxa bfddqshksb blscm 45-40% xe mxb bqjdla brpkxj, yvlvofwqynd dvbv qbzpzlvsr jruu ekbgtjgyxx hbztikfgtkl toqdef bar ceiwb odswpmzfb wd awaj gl Jkoapssfb Rpmkdm Pqphzoujmyfxzg vud sija ieeclybi xuazu. “Cda ithgyyxdz je zwddbwjz,” kw wrek.
Rtczgi musm cdh vd yondkbtw qatkpkxob zaw fkctgj fjyx dnj tkvbohi xzsi ozktlfxwk, zw vavt sj dvsafeubc. 
“Ch’w gxw fd uqi ‘dlm ivgz puv omliutw’, nrx yu'in zwzuv yr fsgk xwcw witq nvoz awbo hoj iocccxd pi lbqwstjk xyiv ddb bptfz ydd rlx ywmcae wz lszv lan sxn tcuypq hc gwueo, rk lnbqo xk kgsh zb ngpoof hqvrgo updpm ier,” nuqr Rknt Ugygrm’b Xvkho. “Oo zzku mxpqr jb'mx zuqzgc jthol hs nrgqmeu zjk miicfolollx.”
Sifted Daily newsletter

Sifted Daily newsletter

Weekdays

Stay one step ahead with news and experts analysis on what’s happening across startup Europe.