Circular smartphones II
United Kingdom, GB
Founded in 2013, Binomia ltd is based in the UK, and it owns a phone e-commerce website Gettech.com. The company refurbishes second-hand phones and sells them online to consumers via Gettech.com, a brand owned fully by the company.
This is the second campaign held by Binomia Ltd at GoParity. After raising 100.000€ in the first campaign, the entity will aim at raising 100.000€ more to further expand and grow its operations in Europe. Roughly 70% of the funds raised through this campaign will be used to prepare for the busy season coming up during the last quarter of the year (Black Friday and Christmas), i.e. to buy more stock. Around 20% of the funds will be used to expand their website to more European countries and the remaining 10% to invest on a marketing and analytics SaaS (i.e. Service as a Software) platform to improve the company's analytics and customer marketing.
The group’s revenue run rate has increased to over 4 million euros which will help to repay the loan. Binomia also has multi-year international development contracts to roll out low-cost smartphones’ solutions in Africa, the largest of these contracts is worth up to 3 million USD.
The promoter is making smartphones more affordable in an environmentally sustainable way by refurbishing used devices. Customers can save up to 60% if they buy a refurbished device, in comparison with a new device.
Operating primarily in the UK and Ireland, Binomia is fast-growing, having a smaller presence in Africa, with international development contracts to roll out low-cost smartphones’ solutions in the continent, including a contract worth up to 3 million USD. In some African countries, access to an internet-enabled phone is restricted due to the cost of purchase. This solution has the potential to help reduce the digital gap, by allowing access to a smartphone for the first time.
Promotion of circular economy: the refurbishing of mobile phones will avoid the waste of 30.000 devices in the next 24 months, recycling them and enabling them to further utilization.
Enabling greater access to good quality smartphones: the company’s offering of refurbished phones, particularly when combined with an instalment offering, makes smartphone devices more affordable for the end-user (the overall cost of the devices is up to 60% lower).
Improving equal access: the lower acquisition price of internet-enabled devices, improves equality in the access to devices to the more underserved groups, to whom the average cost of a smartphone exceeds their disposable income. Particularly in the group’s sales in Africa, the target is middle- and low-income consumers, rural populations, and women.
The funds raised through this campaign will be used to further expand the company’s operations in Europe. The company's revenues have increased significantly during 2021, and the business has been growing sustainably. It is expected that this loan will be repaid through profits made from the previous investment, as well as the investment to be made using the proceeds from this loan.
Key Investment Information Sheet
Founded in 2013 in the United Kingdom, Binomia Ltd is the parent company of the group with the same name and it owns a phone e-commerce website called Gettech.com via a subsidiary in Ireland. The group has 18 full-time staff and a revenue run rate of more than 4 million euros. The business has the backing of several venture capital funds including Downing Ventures and Force Over Mass Capital along with a number of business angels and the company has raised over 5 million euros of equity investment.
The company’s addressable market is quite large. In addition, GetTech has a relevant margin on each phone, while allowing customers to save up to 60% per device when compared with buying a new device.
The company’s team has backgrounds in the telecoms and in the mobile phone sector. Gettech’s manager has previously worked in the phone refurbishment sector for 8 years; the group’s CTO has previously worked at a leading phone retailer in the UK, and the CEO has previously worked in the software sector for 8 years.
Binomia Ltd buys second-hand phones from business partners and then refurbishes the devices in the company’s office in Ireland. After this, the phones are sold primarily online in Europe with Ireland being its strongest market. Nonetheless, the devices are also sold in Africa. The company has a good margin on each device and is aiming to sell over 30.000 smartphones in the following 24 months.
Europe and Africa
Number of GoParity Loans
Open for investment
This campaign is open for investment
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