Back Market heading in the right direction to profitability

Back Market, a marketplace for pre-owned phones, laptops, and other electronic devices, posted a forty five percent revenue growth last 12 months, reaching 320 million euros. The expansion continues unabated, and the corporate expects to show a profit for the primary time this 12 months.

Headquartered in Paris and Bordeaux, Back Market now employs roughly 700 people. The corporate, which has raised greater than 1 billion dollars in capital to expand into 18 countries, will rejoice its tenth anniversary in November. Shortly thereafter, CEO Thibaud Hug de Larauze expects to report positive earnings for the primary time.

Boom in Britain

The UK, where Back Market began operations in 2020, is currently its most important growth market. Revenue there increased by 80 percent last 12 months, and the market share grew to 44 percent of Britain’s online refurbished tech market, rising to greater than half for smartphones. In keeping with Hug de Larauze, this growth is as a result of a mixture of cost savings driven by high inflation and a deal with sustainability.

‘E-waste is a giant topic; it’s something that matters to people.’

The CEO, who considers himself more of an eco-warrior than a tech guru, points out the advantages for the planet along with the anticipated profits: “The more we grow the business, the higher it’s when it comes to impact”, he tells the Guardian.

Recommerce on the rise

As a specialized marketplace, Back Market operates in the web recommerce market, which incorporates solutions like repair, remanufacturing, rental services, reconditioning, refurbishing, and resale. The European recommerce market is growing faster than overall online spending and is anticipated to achieve a trade volume of 120 billion euros by 2025.

Vinted

A outstanding example, Vinted, a C2C sales platform for used clothing, has already demonstrated that recommerce might be profitable. Back Market is now on the verge of achieving the identical.