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Capzanine and Creadev invest in Recommerce Group

European private investment management funds Capzanine and Creadev are joining forces with the management of Recommerce Group in a EUR50m fundraising.

This fundraising aims to support the company’s growth in countries where it already operates and its expansion into new territories as it capitalises on the rapidly growing market for reconditioned smartphones.
Recommerce Group, a key player in the circular economy and pioneer of smartphone reconditioning, was founded in 2009. It anticipates 30 per cent market growth potential in the coming years, and rapid expansion in 2018 with revenues of over EUR50m. Operating around the world, Recommerce works with the largest European retailers and with carriers in France, Switzerland and Spain. It has a team of 70 people.
With over 60,000 mobiles bought back, reconditioned and resold every month, Recommerce has helped to ensure that consumers now instinctively consider buying a reconditioned mobile by giving them reliable, guaranteed products at fair and sustainable prices, and customer service identical to the standard in the new retail sector. Recommerce today boasts an estimated handset buyback market share of over 50 per cent of France. The market for reconditioned mobiles is growing by over 20 per cent annually worldwide and represents a new market currently worth 500 million euros in France alone. According to Strategy Analytics, more than 131 million units will be reconditioned in 2018 with an expected growth of +48 per cent between 2017 and 2022.
Thanks to the Recommerce’s success and its mastery of its model, its growth phase was exceptionally strong, driven by technological know-how and an R&D unit at the cutting edge in terms of expertise and predictive analysis of the various resale markets around the world. The company has invested in artificial intelligence tools enabling it to produce multiple-year forecasts of the value of smartphones.
Recommerce’s model is aligned with that of the circular economy, which aims to rethink methods of production and consumption in order to use natural resources as efficiently as possible and therefore limit waste.  The company is deeply committed to the development of this economic model, which combines environmental and economic issues and solutions.
Pierre-Etienne Roinat, Co-Founder, Chairman and Chief Executive Officer of Recommerce, says: “It is very exciting to see how far and how fast our initial, pioneering vision of reconditioning is spreading in Europe. This fundraising will enable us to develop these innovative products even more widely in the coming years against the backdrop of a paradigm shift in terms of consumer behaviour, and as part of the circular economy we are very attached to.”
According to Bruno Bonnin, a director at Capzanine, “this transaction dovetails neatly with the strategy of the Capzanine 4 Flex Equity fund, which seeks to support SMEs and mid-cap firms with high growth potential and enable them to continue growing. We were particularly impressed by the quality of Recommerce’s management team, which has combined growth with profitability while developing technological tools and strategic partnerships to lay the groundwork for growth over the coming years”.
Florent Thomann, executive director at CREADEV, adds: “We are very happy to join the founding and leadership team, Pierre-Etienne, Alain, Patrick, Antoine, Cédric et Benoit, as well as the rest of their team, at such a defining moment of the company’s expansion.Together, they achieved building a unique value proposition in their market and growing it rapidly. We place great value in supporting teams who have patiently built their project based on powerful human and technological fundamentals, and later demonstrated their growth capacity. By helping the team to focus on the long term and promoting commercial and global synergies with the brands of the Mulliez ecosystem, we are committed to fulfill this potential on a large scale.”

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