Turkish refurbished tech player EasyCep gets TL 9M seed funding
Aiming to put idle secondhand devices back into the economy, Turkish refurbished electronics marketplace EasyCep has received seed funding from local and international investors and is now looking to expand internationally in 2022
AS IS THE case all over the world, interest in secondhand electronic devices in Turkey has also been increasing in recent years. Refurbished mobile phones emerge as the most noteworthy product in this market.
Approximately 20 million secondhand mobile phones are estimated to be sold in Turkey each year and the size of the market is estimated to be around $6 billion.
EasyCep, the first marketplace in the refurbished electronics market in Turkey, has raised TL 9 million ($1 million) funding in its seed investment round that witnessed participation from leading angel investors and new generation entrepreneurs from Turkey and the rest of the world.
The list of investors includes formidable corporations and businesspeople such as Finberg, the corporate venture capital fund of Fibabanka, one of the fastest-growing financial institutions of Turkey; the Turkey network of Keiretsu Forum, one of the largest angel investor networks in the world; Hakan Baş, one of the founders of Peak Games and Ace Games; İlker Sözdinler, one of the founders of Birleşik Ödeme; and Papara’s founder Ahmed Karslı.
SECONDHAND PRODUCTS
Founded in 2018 by two college friends, Mehmet Akif Özdemir and İsmail Dinçer, EasyCep repairs secondhand electronic items such as mobile phones, smartwatches, tablets and computers and sells them with a one-year warranty.
The two partners, who are currently working with a group of 40 people, have refurbished and sold 30,000 devices in three years.
The devices are cleaned, tested for defects and made ready for sale at 70% of their original price.
“The refurbished electronic market has existed in the world for a long time, but no such market had developed in Turkey,” Özdemir said, telling the company’s story.
“We thought that our country needs this. The biggest contribution of Easycep to our country is to bring secondhand electronic products to the economy in a reliable and guaranteed way and to support the reduction of the current account deficit. In addition, we think that the importance of sustainability and circular economy-themed investments in our country will gradually increase,” he noted.
Özdemir pointed out that the increasing prices of electronic products direct consumers to secondhand markets.
“The number of secondhand product users is increasing day by day and they are looking for reliable platforms where they can buy these refurbished products. As EasyCep, we respond to the need of consumers with our refurbished electronic product sales. All items we sell are guaranteed for at least 12 months,” he added.
20 MILLION PHONES PER YEAR
Noting that mobile phones currently constitute the largest annual transaction volume, Özdemir said some 20 million secondhand phones change hands per year in the country and that the market size reaches approximately $6 billion.
He pointed out that the size of the refurbished phone market in the world is around $50 billion.
“330 million refurbished phones are sold annually all over the world. The refurbished phone market in our country has made significant progress in the last two years with the contributions of EasyCep,” he continued.
“However, we are still in the very early stage. The Trade Ministry conducted a regulation study on the sale of refurbished phones in August 2020. Accordingly, companies that have a renewal center license from the Trade Ministry will be able to sell refurbished phones. As EasyCep, we made the necessary applications. We aim to be the first licensed company in this field.”
2022 GOAL: GLOBAL MARKET
Noting that the company was founded on a business model that has proven its success in the world, Özdemir stated that the market is estimated to grow rapidly in the next 10 years along with the market regulation.
EasyCep has been providing online marketplace services for refurbished electronic products since 2020.
Özdemir stressed that the vendors audited and certified by the company are also able to sell their products to end users via EasyCep.
“In this business that we started with mobile phones, we are currently both purchasing and selling phones, computers, tablets and smartwatches. In the upcoming period, we will purchase and refurbish and sell many electronic items. The investment we have received will give us great strength in this way,” he noted.
Describing their goal as “to be Turkey’s largest marketplace in the sale of refurbished electronic products,” Özdemir highlighted that they would soon also start refurbishing and selling different electronic products. He stressed that they are planning to expand internationally as of 2022.
INTEREST IN APPLE PRODUCTS
According to Easycep data, refurbished Apple products are the most popular brand in the country.
Özdemir says Apple products constitute some 60% of the overall sales. The remaining 40% is shared by other brands such as Samsung, Huawei, Xiaomi and Oppo.