With a fund-raising of 276 million euros and a valuation of over 1 billion dollars, Back Market, a specialist in refurbished phones, has entered the closed circle of French unicorns. However, the proposed private copy levy on refurbished products has spoiled the party.
The plan to tax refurbished products
Despite raising 276 million euros in capital and joining the club of French unicorns - startups valued at over 1 billion dollars - Back Market, a specialist in the sale of refurbished electronic products, is not in the mood to celebrate its victory.
The company is opposed to the government's plan to tax reconditioned products for private copy, which would help the cultural sector by providing additional remuneration for creators and publishers.
According to SIRRMIET, the interprofessional association for the reconditioning and regeneration of IT, electronic and telecom equipment, this fee would increase the selling price of reconditioned phones by over 10%. According to Back Market, this increase would be around 14 euros per reconditioned handset.
The company questions the relevance of taxing the circular economy at a time when the government intends to accelerate the ecological transition. According to the company, there would be a double injustice, both for consumers, who would pay this tax twice (once on the new product and once on the reconditioned product), and for reconditioners, whose business model would be penalized by this fee.
"We tried (just about) everything to explain to the legislator that he was about to jeopardize hundreds of jobs all over France and clip the wings of an entire circular economy remade in France," says Back Market on its blog.
Back Market continues its international expansion
To pursue its development and secure its business model, Back Market intends to continue its internationalization. Founded in 2014, the company now has 480 employees. It is present in 13 countries across 3 continents, and aims to expand its presence to 6 additional countries by the end of 2021, including South Korea.
It is also keen to develop new services. During the various confinements that punctuated the year 2020 and the beginning of 2021, the company reviewed its operations to enable private individuals to continue recycling their old appliances without having to visit take-back stores, which were closed for health reasons.
Now, people who want to have their appliances recycled can do so entirely online, limiting constraints and multiplying sources of supply for reconditioners.
Back Market also intends to diversify the range of refurbished products offered on its site. While the majority of products currently on the site are smartphones and many laptops, the company hopes to include other appliances in the future, such as food processors, for which demand is strong.