Swappie raises 5M€ from Inventure & others

Swappie secures a round to grow further in Italy, sees surging demand for refurbished iPhones

Swappie raises 5M€ from Inventure & others

Swappie, a fast-growing buyer and seller of refurbished iPhones, has raised 5 million euros ($5.6 million) in round-A financing, led by Inventure, a Nordic Technology Fund. Existing investors, Lifeline Ventures and Reaktor Ventures, also joined the round.

Swappie plans to use the investment for expanding further in Italy and other European markets in the coming months. Alongside its home market Finland, the company also operates in Sweden.

“Swappie has created an outstanding service that responds to a significant growth trend. The team has already proved its ability for big growth leaps in a very short time frame. We invested in Swappie as we believe it has great potential to become a true European ecommerce success story,” Lauri Kokkila from Inventure said.

Swappie aims to make refurbished consumer electronics mainstream and become a European market leader in the area. It is currently one of the fastest-growing and most prominent start-ups coming from Finland.

There is an ongoing trend of maturing technology in mobile devices and only marginal improvements in newer smartphone generations coupled with rising retail prices. These raise the barrier for consumers to upgrade to newer phone models and it has become viable to refurbish higher-end smartphones for re-use. Swappie has built an industrial-scale service that provides a cost-efficient and safe way for customers to access premium phones at a much lower cost.

“We are growing around 100 percent each month in Italy already on greater demand for high-quality used phones, as consumers look for more sustainable choices and ways to save some money. The demand for refurbished phones will grow to 10-15 percent of the total smartphone market in all of our markets within the next five years,” Swappie CEO Sami Marttinen says.

Swappie reported sales of 8.3 million euros ($9.3 million) and sold over 25.000 refurbished iPhones in 2018, only in its second year of operations. So far the firm has financed growth primarily from cash flow, with seed funding from Lifeline Ventures and Reaktor Ventures.

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