eMAG Ventures invests EUR 1.5 mln in Romanian refurbished phones marketplace Flip.ro
Romanian refurbished phones marketplace Flip.ro received an investment of EUR 1.5 million from eMAG Ventures, the investment fund created by eMAG - Romania's largest online retailer. The Romanian startup targets a leading position on the refurbished products market in Central and Eastern Europe.
eMAG took over the minority shareholders' stake in Flip.ro and made an additional EUR 1.5 million investment in the company's development, the startup said in a press release. The three founders George Moroianu, Alin Luca and Alex Burghelia, still hold 57.74% of Flip's shares.
The three entrepreneurs launched Flip.ro in December 2019. Their startup has evolved rapidly so far, reaching 50,000 customers in less than two years. It sold its first smartphone in December 2019 and reached a turnover of EUR 2.5 million at the end of last year. During this time, the team has grown to 50 employees.
The founders estimate a turnover of EUR 14 million in 2021 and a team of over 100 employees by mid-2022.
"The attracted investment will go in three directions: team development, product development, and internationalization," Flip's founders said.
Meanwhile, Bogdan Axinia, managing director of eMAG Ventures, said: "Flip can become the leader of the refurbished products market in CEE in the next three to five years."
In addition to funding, Flip will benefit from eMAG's expertise in accelerating business through technology, operational know-how and rapid scaling of business internationally.
The sale of used and refurbished electronics, especially smartphones, has become a powerful trend in the last ten years. Western countries, such as the United States, France, Germany, were among the first to embrace the concept of circular economy and its benefits.
Founded in November 2019, Flip aims to revolutionize the way people sell and buy refurbished and used electronics online. It is the first remarketed products marketplace in Romania to offer similar selling conditions as new products: 14-day return right and 12-month warranty.
(Photo: Flip.ro's founders; photo source: the company)