Refurbed, an Austria-based online marketplace that sells refurbished electronics in Europe, raised $57 million in a Series C round.
The platform will use the capital to expand its marketplace offerings, strengthen its presence in core markets and enhance user experience, according to a Tuesday (Nov. 7) press release. The company’s goal is to become “the leading platform for sustainable products and services to empower consumers to purchase refurbished technology in a more accessible, risk-free and more sustainable manner.”
“Our vision is to increase consumers’ trust in refurbished products,” Refurbed Co-founder Kilian Kaminski said in the release. “Refurbishment must become the ‘new normal,’ and we as consumers must rethink our consumption in order to reduce the impact on the environment.”
Refurbed got its start in Austria and Germany and has since expanded to Italy, Sweden, Denmark, Ireland and the Netherlands, per the release. The company has reached external sales of more than 1 billion euros ($1.1 billion) since its founding in 2017.
The Series C round was led by existing investors Evli, C4 and Speedinvest, and there was participation from All Iron and other new backers, the release said.
The investment in Refurbed reflects a wider market shift toward embracing sustainability. In August, for example, eCommerce giant Amazon revealed its initiatives internally and in collaboration with suppliers and vendors, aimed at minimizing excessive packaging.
About 11% of the products Amazon sells are delivered to customers using only the original manufacturer’s packaging.
The company has also restructured its logistics network, resulting in reduced travel distance. Products now traverse 15% less distance and undergo 12% fewer handling instances in the shipping process.
Amazon collaborates with manufacturers to reengineer packaging, ensuring its durability during shipping and eliminating the need for an additional outer box. Additionally, the company occasionally reduces container sizes to lower shipping costs.
The company assesses packaging to ascertain its suitability for shipping and then shares the design with other suppliers producing similar items.
Meanwhile, projections suggest that the resale industry will surge to $53 billion in 2023.
Sustainability in the retail industry is a complex and evolving concept. It involves aligning with consumer expectations, investing in sustainable practices, adapting to regulations, and staying ahead of market trends.
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.