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 shortly after the French company launched it marketplace for previously owned consumer electronics in the United States. Back Market, which first launched three and a half years ago, provides a marketplace for refurbished devices — matching 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 Back Market CEO and cofounder Thibaud Hug de Larauze, 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, which is the majority shareholder of Christian Dior and LVMH. The round also included previous investors Eurazeo, Aglaé Ventures, and Daphni.
The company has now raised a total of $55 million. It operates in six 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 are a boom market, generally speaking, 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,” Daphni partner and cofounder Pierre-Yves Meerschman 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.”