Paris-based Back Market announced today that it has raised $48 million in venture capital as the market for used and refurbished gadgets continues to soar.
The funding comes as the French company has recently launched it marketplace for previously-owned consumer electronics in the United States. The company launched three and a half years ago and provides a marketplace for refurbished devices to match companies that restore gadgets with consumers.
“This fundraising is a signal of maturity not only for Back Market, but also for the rapidly expanding refurbished market,” said Thibaud Hug de Larauze, CEO and co-founder, Back Market, in a statement. “Our goal is to create a global brand, with a name synonymous to ‘refurbished.’ Global leadership is there for the taking, and speed is imperative. This funding makes it possible for us to rise to the challenge.”
The latest round was led by Groupe Arnault, the umbrella company of Bernard Arnault, the majority shareholder of Christian Dior and LVMH. It also included previous investors, Eurazeo, Aglaé Ventures and Daphni.
The company has now raised a total of $55 million. It operates in 6 countries and reported making a profit last year on $100 million in sales. While sales of refurbished gadgets tend to dominate the marketplace, the site also sells tablets and laptops, among other devices.
Refurbished electronics in general are a boom market, accounting for one in 10 smartphones sold in the U.S. last year, according to market research firm Counterpoint.
Back Market works by partnering with and vetting the growing number of factory operations that buy and refurbish consumer electronics. The site centralizes this wide network of manufacturers and then allows consumers to search through all the listings in one place.
“Back Market brings a game changing approach to address a real market need, and is well aligned to leverage a tremendous market opportunity in the refurbished goods space,” Pierre-Yves Meerschman, Partner and Co-Founder, Daphni, said in a statement. “The company’s leadership position is not only based on a well-tuned business strategy, but it is enhanced by being a socially responsible company that we are proud to be associated with.”