LONDON, UK: Schroder UK Public Private Trust has made a €12.0 million investment in leading renewed electronics marketplace, Back Market (incorporated as Jung S.A.S.), as part of its $510 million Series E funding round.
The round was led by Sprints Capital, together with Eurazeo Growth, Aglaé Ventures, General Atlantic, and Generation Investment Management. The Company invested alongside its co-investment partner, Sprints Capital, via a single asset fund, Sprints Capital Ellison LP.
Launched in 2014, Back Market is the leading dedicated renewed technology marketplace. The company brings high-quality professionally refurbished electronic devices and appliances to customers in 16 countries including the United Kingdom, the United States, France, Germany, Italy, Spain, Belgium, Austria, the Netherlands, and more recently, Portugal, Japan, Finland, Ireland, Greece, Slovakia and Sweden.
The Series E round underpins Back Market’s ambitious vision and allows the company to build on its position as the leading marketplace exclusively dedicated to the sale of expertly refurbished electronics. Back Market is determined to make circular technology mainstream by delivering an experience even better than buying new.
Consumers are starting to embrace more environmentally friendly habits and the gap between caring about the environment and actual consumption behaviours is beginning to shrink. According to a study made by Kantar, 1 in 5 shoppers say they have adopted more sustainable habits since the beginning of the pandemic in March 2020. This is encouraging, considering that 90%1 of an electronic device’s carbon footprint comes from the manufacturing process. Extending the life of smartphones and other electronics can have a significant impact on slowing climate change.
This investment is in line with the Company’s focus on backing innovative businesses with disruptive innovation, significant global growth potential, high quality management teams and supported by highly reputable co-investors. The Company has committed to improving its sustainability profile and intends to disclose where appropriate the United Nations’ Sustainable Development Goals (“SDGs”) associated with new investments.
The investment in Back Market is in line with SDG 11 “Make cities and human settlements inclusive, safe, resilient and sustainable”, specifically Target 11.6 ” By 2030, reduce the adverse per capita environmental impact of cities”, SDG 12 “Ensure sustainable consumption and production patterns”, specifically Target 12.4 “By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle”, Target 12.5 “By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse”, and SDG 13 “Take urgent action to combat climate change and its impacts”.
Tim Creed and Roger Doig, Portfolio Managers of the Company, jointly commented: “We are delighted to announce the fifth new private equity investment since our appointment as Portfolio Manager. In a rapidly evolving electronics market where sustainably conscious consumers are increasingly opting for recycled products as an alternative to new technology, Back Market is very well placed for continued strong growth. By prolonging the life of millions of consumer electronics devices, Back Market is also set to have a considerable impact on reducing the overall environmental impact of this important industry. We look forward to supporting the company on its journey over the coming years”.