Back Market on track to profitability

Back Market, a marketplace for pre-owned phones, laptops, and other electronic devices, posted a 45 percent revenue growth last year, reaching 320 million euros. The growth continues unabated, and the company expects to turn a profit for the first time this year.

Headquartered in Paris and Bordeaux, Back Market now employs approximately 700 people. The company, which has raised more than 1 billion dollars in capital to expand into 18 countries, will celebrate its 10th anniversary in November. Shortly thereafter, CEO Thibaud Hug de Larauze expects to report positive earnings for the first time.

Boom in Britain

The United Kingdom, where Back Market began operations in 2020, is currently its main growth market. Revenue there increased by 80 percent last year, and the market share grew to 44 percent of Britain’s online refurbished tech market, rising to more than half for smartphones. According to Hug de Larauze, this growth is due to a combination of cost savings driven by high inflation and a focus on sustainability.

‘E-waste is a big 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 benefits for the planet in addition to the anticipated profits: “The more we grow the business, the better it is in terms of impact”, he tells the Guardian.

Recommerce on the rise

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

Vinted

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