Swappie raises €108M Series C to accelerate European growth

Swappie has announced a $124M (€108M) Series C funding round led by growth equity firm Verdane.

Swappie is making it easier than ever for Irish people to purchase environmentally responsible smartphones.

It is transforming the market by closing the loop on refurbished electronics for the first time and making the circular smartphone economy accessible to the masses.

The overall market for used and refurbished smartphones is forecast to grow at an annual growth rate of 10.23% between 2022 and 2027.

This latest round brings the company’s total funding to over €149M, following a Series B round of €35.8 million in June 2020, which coincided with Swappie’s launch in a number of European markets including Ireland.

The Finland-based scale-up, which buys, refurbishes, and sells iPhones – ensuring high quality through controlling the whole value chain – will use this injection of funding to bolster its European expansion and accelerate the growth of the category as a whole.

With the goal of becoming the leading European player in the refurbished smartphone sector, Swappie will focus on scaling operations in Ireland and the 14 other markets it operates in across the continent.

The funding will help Swappie deepen its ties with local Irish partners, improve the experience for Irish consumers and make it easier for everyone to make a sustainable choice.

Having almost doubled its market presence since last summer – increasing from eight to 15 countries – the scale-up is increasing the accessibility of high-quality refurbished devices and building trust in the category.

This will involve increasing its headcount of 1,200 talented and purpose-driven people by the end of 2022, to 2,200 people.

Sami Marttinen, Co-founder and CEO of Swappie commented: “Swappie continues to strengthen our European leadership in refurbished iPhones with this investment.

“Our main priority is accelerating growth in our current European markets, with a view to expanding further afield in the next few years, to meet rising demand.

“People are increasingly looking for ways to lessen their environmental impact and locking on to the fact that smartphone purchasing is an area we can all address.

“We all want great tech, but it doesn’t need to cost the earth. We truly believe that Swappie can drive consumer awareness and trust in the sector by standardising quality, championing the role of sustainability, and making buying a refurbished smartphone as common as buying a used car.”

Janne Holmia, Partner at Verdane added: “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.”

“The market opportunity for refurbished smartphones is vast. The total smartphone market is worth €100 billion in Europe, with used or refurbished phones making up just over 10% of that today. With only 25% of pre-owned phones currently sold, there is huge potential for the refurbished phone market to grow,” added Emma Lehikoinen, Chief Operating Officer at Swappie.