Article with Refurbly in BREAKIT magazine:
In 5 years, I would guess that the majority of mobile phones sold in Sweden will be used," says David Lundgren Fetah.
As our mobile phones become more and more advanced, the price tags have also become bigger. In parallel with this, the focus on sustainability is increasing and many consumers would rather buy a used phone than a new one.
These are factors that the team behind Refurbly have taken note of. They have built their business around both selling and renting out used mobile phones.
"A huge development"
Co-founder David Lundgren Fetah believes that the view on buying used has changed and become increasingly positive.
There has been an enormous development since 2016 and a certain disdain has been created towards updating one's mobile phone every two years," says David Lundgren Fetah.
It was in 2016 that Mobilverkstan in Örebro, which David Lundgren Fetah ran together with his father, first started selling used mobile phones. Since last year, the investment has been run under the Refurbly brand, and David Lundgren Fetah has also started renting out used mobile phones through the hyrmobil.se service.
The company rents out mobile phones to companies and handles all technical details. When the companies are finished with the mobile phones, Refurbly equips them again and sells them on to private individuals. They also buy in and fix mobiles from larger companies when they replace and upgrade to newer phones.
Want to increase the rental
It is precisely the rental that is expected to be the biggest source of income going forward.
If you look at cash flow and what it can give us in terms of growth, it's incredibly good. In terms of sustainability issues, we want to reach the public sector and municipalities," says David Lundgren Fetah.
Currently, they have rented out around a hundred mobiles and the plan is to scale up the business. The goal is that all companies that repair their mobile phones in the workshop should start renting them instead.
According to David Lundgren Fetah, prices can be up to 40 percent lower with them than on the regular first-hand market. However, this does not mean that it is cheaper than when you buy your mobile directly from another private person. However, how much more expensive it is on average to buy a mobile phone via Refurbly compared to, for example, Blocket or Tradera, is difficult to determine.
Guarantees that the mobiles work
The company's ace is, among other things, that they guarantee that the mobiles have been restored, updated and undergo checks before they are sold on.
We all know how difficult it can be to buy a used mobile phone, because they usually lack a warranty, can be locked to specific operators and at the same time have outdated batteries," says David Lundgren Fetah.
Competitors on the market include Finnish Swappie, which has made inroads in Sweden.
David Lundgren Fetah. says that Refurbly's profit margin varies depending on the model of the mobile phone and the need for refurbishment, but is around 10-25 percent.
Should triple the turnover this year
The mobile business is reported to have a turnover of around SEK 10 million for 2019. Refurbly's operations still only account for around 35 percent of that figure, but the goal is to increase turnover by 300 percent this year.
David Lundgren Fetah further says that the result is in line with the figures for 2018, when the company made a profit of around SEK 150,000.
He sees the future positively and points out, among other things, that Klarna's model, with buying and paying later, has meant that more people dare to buy used.
"In 5 years, I would guess that the majority of mobile phones sold in Sweden will be used".
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