Sofia Angels Ventures – New Investment Press Release
George Sidjimkov, Partner at Sofia Angels Ventures, commented: “We are proud to be backing Swipe.bg because demand for refurbished phones is growing rapidly demonstrating the untapped potential of the used phone market in Bulgaria. We believe that Swipe.bg’s consumer-friendly approach and innovative business model will continue to drive its success in the years to come.”
2024 is shaping to be a successful year right from the beginning, as Sofia Angels Ventures (SAV), a €13M venture fund backed up by EIF for angel and private co-investment, headquartered in Sofia, is proud to announce its fifteenth investment – Swipe.bg.
Swipe.bg has successfully closed a round, securing €1,400,000. This substantial investment is intended to support the Company’s rapid organic growth. The Company is backed by Sofia Angels Ventures (SAV), Vitosha Venture Partners, NV3 and several well-known business angels, who have participated in the previous round too.
Swipe.bg, a Bulgarian company specializing in the trade of used phones, has seen remarkable growth, with its revenues increasing fivefold in 2023. Founded by Mihail Dimitrov, the company has filled a significant niche in the Bulgarian market, capitalizing on the lack of a developed second-hand smartphone market.
The company operates by purchasing, restoring, and reselling used phones, a model that has garnered high interest due to its offering of lower prices compared to new phones in retail networks, without compromising on quality. Each month, approximately 1000 phones go through the platform, categorized based on their condition and potential for resale. About 75% of these phones are sold within a month, indicating a robust demand for refurbished phones.
Swipe.bg is also changing the dynamics of the phone market in Bulgaria, traditionally dominated by telecoms and large retail chains. The company has established partnerships with retailers like „Technomarket“ and „Zora“, implementing innovative models like ‘shop within a shop’. Such collaborations have enabled customers to return their old phones, often receiving significant discounts on new purchases. This consumer-friendly approach has not only benefited customers but also positioned Swipe.bg as a complementary, rather than competitive, entity in the market.
Looking forward, Swipe.bg has ambitious expansion plans. The company aims to increase its locations for phone purchasing and inspection from three to around 60 by the end of the year. This expansion will involve significant operational changes and staffing increases. Additionally, Dimitrov plans to launch Swipe.bg websites in Greece and Romania within the first three months of the new year and expand into other Eastern European countries by year-end. This international expansion aligns with the company’s goal of establishing itself as a major player in the European used phone market. Dimitrov emphasizes the importance of sustainable growth, indicating that while additional funding options are available, the priority is to build a profitable and value-generating business for its partners.
January 2024
Sofia
