Refurbi, a Colombian company building a circular ecosystem for refurbished smartphones, has secured a $4 million seed extension round. The financing, led by investors including the all-female collective Epic Angels and Latin Leap, is earmarked to fuel the company's expansion into Mexico. This investment underscores growing confidence in sustainable technology solutions that address both affordability and trust within the Latin American market.
Addressing a Market of Distrust
Refurbi was established to tackle the high informality and consumer skepticism prevalent in Latin America's used device market. Co-founder Sebastián Jiménez notes the primary barrier is not price but a fundamental lack of trust in product quality and after-sales support. The company directly confronts this challenge by creating a reliable and transparent purchasing experience for its customers.
To build this trust, Refurbi implements rigorous industrial refurbishment processes and backs its products with consumer-centric policies. Each device includes a 14-month warranty, a 30-day return policy, and packaging designed to mimic a new product experience. This strategy of de-risking the purchase for the consumer has been central to its market adoption and success.
A Comprehensive Circular Economy Platform
The company operates an integrated platform that extends beyond a simple marketplace for refurbished devices. It includes sophisticated trade-in programs, proprietary management software, and tailored financing and insurance solutions. This ecosystem helps retailers, manufacturers, and telecom operators efficiently manage the entire lifecycle of electronic devices, fostering a more sustainable model.
Having validated its model in its home market, Refurbi has become Colombia’s leading refurbished smartphone platform. The company has already served over 80,000 users and captured an estimated 0.5% of the country's total mobile phone market. This strong local foundation provides a solid launchpad for its planned regional expansion and scaling efforts.
Strategic Expansion and Ambitious Goals
With the new $4 million in capital, Refurbi is set to accelerate its growth, with an immediate focus on entering the Mexican market. The funds will be used to enhance its technology, improve operational efficiency, and strengthen its commercial scale. This move is a critical first step in its broader strategy to establish a significant regional footprint.
Looking further ahead, Refurbi has set an ambitious long-term target of reaching US$100 million in annual revenue by 2030. Achieving this goal will depend on forging strategic partnerships with major retailers, manufacturers, and telecom operators across Latin America. The recent funding is a key milestone in positioning the company to pursue these large-scale collaborations.
Investor Confidence in Sustainable Impact
The investment round attracted a diverse group of backers, including PSM Impact Ventures, the Inter-American Development Bank, and Banco Itaú. This coalition signals strong market confidence in Refurbi's dual mission of providing affordable technology and promoting a circular economy. The venture aligns with a growing focus on climate-related investments and sustainable business models in the region.
Investors like Epic Angels highlight the unique opportunity in Latin America where the business and impact cases are perfectly aligned. Providing access to affordable, high-quality devices meets a clear market need while simultaneously addressing the mounting challenge of electronic waste. This synergy creates a model with both sustainable unit economics and tangible social returns for the community.
This funding round marks a pivotal moment for Refurbi, providing the necessary resources to scale its proven, trust-centric model beyond Colombia. By tackling key consumer barriers and building a comprehensive circular ecosystem, the company is well-positioned to redefine the refurbished electronics market in Latin America. The investment not only validates Refurbi's vision but also signals a broader shift toward sustainable and accessible technology solutions across the region.