Swappie, a Finnish company known for its smartphone refurbishing and trade-in, has secured € 17 million in venture debt financing from the European Investment Bank (EIB). This funding, part of the InvestEU program, will support the company’s efforts to reduce e-waste, conserve raw materials, and lower carbon emissions by promoting the reuse of smartphones in Europe.
The role of refurbished smartphones in sustainability
Europe faces a growing environmental challenge as the demand for smartphones continues to rise. In 2023 alone, Europeans bought 130 million new smartphones, contributing to an average of 80 kg of CO2 emissions per device produced. Despite this, only 25% of pre-owned smartphones are resold, leaving nearly 98 million phones that could be refurbished instead of ending up as e-waste.
Swappie, like many others, seeks to address this missed opportunity by offering refurbished and used smartphones that are both environmentally friendly and cost-effective. The company’s vision is to mainstream refurbished devices by building trust among consumers and highlighting their environmental benefits.
Trust and warranties
To overcome the skepticism surrounding refurbished phones, Swappie offers warranties of up to three years on its devices. Founder Sami Marttinen believes that providing a warranty will encourage more customers to consider refurbished products. "If people trust the market, they’ll be more willing to consume circular products," he explains.
In 2021 alone, Swappie’s customers saved 24,000 tonnes of CO2, the equivalent of the carbon captured by nearly 400,000 trees over a decade. This highlights the significant environmental impact that can be achieved by choosing refurbished over new devices.
Circular economy and critical raw materials
Swappie’s role extends beyond just reducing carbon emissions. Smartphones contain critical raw materials, such as cobalt and lithium, which are essential for electric vehicle batteries and renewable energy storage. By refurbishing and recycling smartphones, Swappie helps conserve these materials, which are in high demand. If half of the smartphones sold in 2023 were refurbished or recycled, Europe could save or recover 1365 tonnes of cobalt and 195 tonnes of lithium—more than half of the lithium produced in Portugal, Europe’s largest producer.
Growing E-Waste and the need for sustainable innovation
The European Union generates 5 million tonnes of e-waste annually, with smartphones contributing significantly to this problem. With over 41 billion smart devices expected to be online by 2025, the urgency to address e-waste and promote circular economy initiatives has never been greater.
Swappie’s work in refurbishing smartphones plays a key role in this effort, and its alignment with the European Investment Bank’s goals for sustainable innovation makes the company a pivotal player in the EU’s environmental strategy.
The Founding of Swappie
Swappie’s journey began when Sami Marttinen and his partner were scammed while buying a used phone online. Recognizing a gap in the market for reliable refurbished smartphones, they decided to create Swappie to help customers avoid fraud and access trustworthy, refurbished devices. Today, Swappie is the largest iPhone refurbisher in Europe, serving over two million customers across 13 countries.
Conclusion
Swappie’s innovative approach to smartphone refurbishing is helping tackle Europe’s e-waste problem, conserve critical raw materials, and reduce carbon emissions. With the support of the European Investment Bank, the company is set to expand its impact on
the circular economy, driving the shift toward a more sustainable future for technology.
Market
Trade-in
Repair
