Back Market raises 110 million euros to continue its international expansion

by bold-lichterman

Back Market, a refurbished telephone specialist whose sales have doubled with confinement, announced on Tuesday that it had raised 110 million euros to continue its international expansion and strengthen its quality control. This fundraising, which had been recorded before the Covid-19 epidemic, should allow Back Market to consolidate its position on the German, British and American markets. Founded in 2014, the French startup has 280 employees in eight countries.

Penetrating a little more the American market, the declared object of the previous fundraising of around 41 million euros carried out in 2018, remains a priority for CEO Thibaud Hug de Larauze. ” That’s four-digit growth for us right now ”, he explains to AFP. “Today is our second largest market with the greatest growth, by far, and the crisis reinforces our idea that we must strengthen this American growth.”

Demand doubled

With the fundraising, Back Market, pinned in 2019 by the magazine 60 million consumers on customer satisfaction, also intends to triple its workforce dedicated to quality control. “We must continue efforts on this”, recognizes the co-founder who wants to do ” reduce the breakdown rate of products sold ”, already halved in the last 18 months according to him. Also pinned for its short duration, the product warranty will be reduced from 6 to 12 months by the end of May, specifies the leader.

Containment was a boon for Back Market, which after a 25% drop in all products in the first week saw demand double, driven by home work and video games. ” Our growth is almost twice as strong as before the Covid“, Says Mr. Hug de Larauze. Computers and telephones having been declared essential products with containment, the Paris-based company has been able to keep 80% of its 1,000 reconditioners in Europe active. The logistical difficulties of carriers such as La Poste were compensated with an integrated carrier service launched in 2019.