The circular economy is catching up with the trend across industries. It aims to reuse raw materials completely or partially to save finite resources. Talking about smartphones, have a limited lifespan due to the latest technologies and products. Smartphones contribute to a substantial amount of e-waste worldwide. Resolving this issue and promoting sustainable device usage among business customers is Berlin-based B2B phone-as-a-service Everphone.
Now, the Device-as-a-Service platform for corporate smartphones and tablets has attracted €270 million in Series D funding from new financing providers such as Citigroup, Phoenix Insurance, and KfW.
The round also saw participation from first-time investor Capnor, a vehicle for Belgium’s De Clercq family, and existing investors such as Cadence Growth Capital, Calista, signal ventures, Alleycorp, and Everphone’s founder, Jan Dzulko. The Berlin-based startup raised $32 million in funding in 2022 and $200 million in 2021.
The financing enables Everphone to achieve decisive growth to integrate an additional one million device users into its circular Device-as-a-Service model.
How was Everphone born?
Everphone was founded by former CHECK24 executive Jan Dzulko in 2016 in Berlin. Its story debuted with a broken display and an unhappy phone insurance buyer. Dzulko realised the need for a better, faster, more customer-friendly way to solve smartphone problems and founded the device-as-a-service startup.
Sustainable DaaS platform
It offers companies an easier way to manage smartphones, tablets, and laptops. Customers include numerous startups and SMEs as well as global enterprises. Everphone covers everything from procurement and configuration to setup, maintenance, and device return.
In addition to removing the hassle from internal IT departments, it also reduces CO2 emissions and waste. Eventually, Everphone creates a more sustainable way of using devices. It helps extend the lifecycle of mobile devices and brings about a circular economy to electronics.
Jan Dzulko, founder and CEO of Everphone said: “I am pleased that despite global economic challenges, we have continued to grow, proving that we have created a resilient business model. We are focused on proactive growth, and our success is reflected in the satisfaction of our customers and employees. Our next goal is to reach the €100 million revenue mark. Additionally, the influx of renowned investors prepares us for the next step towards internationalisation in Europe and the USA. I am so confident in our team, service, and especially future growth that I have personally invested in this round of financing as a founder.”
Dr. Veronika von Heise-Rotenburg, CFO and Managing Director of Everphone added: “We look back on the most successful year in Everphone’s history and are rapidly approaching our targeted profitability. Our focus on healthy and sustainable growth has paid off and will continue to guide us.”
Louis De Clercq, Capnor noted: “We are extremely supportive of Everphone and its strong management team who demonstrated flawless execution in a complex market environment and benefits from untapped growth potential to further deploy its innovative solutions.”
Sebastian Eiseler, Partner at Cadence Growth Capital (CGC) noted: “As the largest investor in Everphone, we are proud to have attracted more internationally leading financing partners for Everphone and see this as an important milestone in the further profitable scaling of the company.”
Sebastian Walf, Head of EMEA Asset Backed Securities said: “Citi offers a flexible ABS loan that enables Everphone to finance both lease payments and residual values of handsets. The securitisation financing goes hand in hand with an inventory loan to provide a seamless financing solution for Everphone.”
Raphael Doerling, Head of Citi Commercial Bank in Germany added: “With this customized financing solution, we are happy to offer Everphone the ability to unlock more of its growth potential. Citi’s global reach as well as its broad experience with fast-scaling digital companies form an excellent basis to tackle Everphone’s growth challenges, especially internationally, ahead.”
Micah Selya, Portfolio Manager, International Private Credit noted: “As lenders in Everphone’s previous credit facility, the Phoenix Insurance Company Ltd has observed first hand Everphone’s spectacular growth over the last two years. We are thrilled to again be participating as lenders in Everphone’s new €250m credit facility.”
Jochen Eichmann, Head of Venture Tech Growth Financing KfW noted: “We are pleased to support Everphone and its innovative business model in its continued growth. The financing through our Venture Tech Growth Financing program aids the company in reaching further milestones.“
