Back Market, an online marketplace for used devices, conducts a new round of funding

Back Market, an online marketplace that sells refurbished iPhones and other electronic devices, has raised capital to raise its valuation to $5.7 billion, according to the company and its investors. Founded in 2014, Back Market repairs and resells electronics, including Apple and Samsung smartphones and tablets, MacBooks, Dell and Microsoft laptops, Krups coffee machines, and Dyson hair dryers.

The Paris-based company raised $510 million in its latest funding round. Leading the investment is Sprints Capital, a London-based investment firm thatse holdings of other technology companies include online payments company Revolut. The new $5.7 billion valuation jumped almost 80 percent from the $3.2 billion level reached by Back Market in May, when it raised $335 million. The growth underscores the boom in start-ups in Europe, which has previously been seen as an alternative in the tech world. Also joining the round are General Atlantic, an existing investor in the e-commerce operator, Paris-based private equity firm Eurozao, Aglaé Ventures, venture capital arm of luxury giant Bernard Arnault, and London-based Generation Investment Management LLP.

Europe-based Back Market plans to double its U.S. workforce to about 100 this year and increase its global workforce by 350 to 1,000 with newly raised funds. Back Market sells renovation equipment directly to consumers through Backmarket.com, and the company receives a commission from each sale. The company does not disclose financial data.

The investment is a bet on growing consumer demand for products that reduce e-waste and offer discounted prices, especially at a time of increased inflationary pressures. Growing sales of new electronics and increasing pressure to move these devices out of landfills have created a huge opportunity for Back Market to win more business.

E-waste contains toxic additives and harmful substances such as mercury, but according to a UN report, only 17.4% of e-waste in 2019 was collected and recycled. Back Market competes with platforms such as Swappa and EcoATM International Ltd. in the United States. But unlike some of its competitors, all of its merchandise comes directly from certified refurbishedrs, distributors and brands.