Northladder secures $10mln through a convertible note led by CE-Ventures
The global pre-owned smartphone market is expected to reach $65 billion by 2024 in a highly disorganised market.
- UAE-based unique digital trading platform for pre-owned electronics, NorthLadder, plans to expand its reach to better connect sellers and buyers of second-hand electronics worldwide.
NorthLadder is the Middle East and North Africa (MENA) region’s unique digital platform that enables frictionless trade of pre-owned electronics. Their model provides great value and convenience to consumers to sell their devices, as well as a steady and reliable supply to buyers on the platform. Today, the company announced a $10 million convertible note in the UAE, led by CE-Ventures, with supporting investment from BECO Capital, Venture Souq and Dutch Founders Fund. BECO had invested $5 million in the last funding round.
Since its launch, NorthLadder has served more than 30,000 customers, and has over 200 trade-in locations and 500+ dealers across three countries. The company has also secured partnerships with large electronics retailers and is now the leading device trade-in player in the UAE. NorthLadder has created several innovative service offerings, some of which are world firsts, to fundamentally offer great value to customers and retail partners.
CE- Ventures, the corporate venture capital arm of Crescent Enterprises, is focused on strategic investments in early-to-late-stage high-growth companies and select venture funds globally. It has invested in various companies across diverse sectors. Commenting on the investment in NorthLadder, Tushar Singhvi, Deputy CEO and Head of Investments at Crescent Enterprises, said: “NorthLadder’s journey has been impressive to date, growing to become the leading trade-in player. And, with the UAE being the global hub that it is, the company is uniquely positioned to dominate the regional market and capture a significant portion of the global trade. We look forward to supporting the scaling of NorthLadder’s operations and its expansion into other strategic markets, with the overarching mission of reducing the tech industry’s carbon footprint and working towards a more sustainable future.”
Dany Farha, CEO & Managing Partner of BECO Capital comments: “NorthLadder has an exceptional management team with an innovative business model. We are excited about continuing to partner with them to create a global business from the region.”
Laurens Groenendijk, Founding Partner of Dutch Founder’s Fund, who previously founded Just-Eat, Treatwell, Miinto and nano-satellite challenger Hiber, commented “Northladder is trying to solve a complex problem by establishing micro-networks in emerging markets on the demand side of the pre-owned electronics market. Although many companies attempted to disrupt this value chain, NorthLadder’s approach is ingenious and strengthens the circular economy. It is a global business, and we also see considerable potential in European markets. We are excited to back one of the best teams in the region”
The new funds will be used to scale up the company’s technology platform, expand geographically, and further current B2B partnerships. Led by cofounders Sandeep Shetty and Pishu Ganglani, NorthLadder received a shot in the arm when Mihin Shah, cofounder and CRO, joined last year to lead the core business. Mihin is a former McKinsey Associate Partner and Global Head of Supply Chain for Landmark Group across 19 countries, and brings deep operations and supply chain experience to the table, which is critical for NorthLadder’s success.
Sandeep Shetty, Cofounder and CEO of NorthLadder is looking forward to experiencing the positive impact of this new round of funding for NorthLadder, stating: “We are privileged to partner with the region’s leading VC firms. We have always envisioned building NorthLadder into a global business. With this latest round of funding, we plan to further strengthen our talent base and expand our market reach in multiple countries including the UAE and KSA. Affordability, driven by Trade-in’s, is a key enabler for the sale of new devices and we are excited about powering this for our partners, through our unique global business model that ensures the best residual value for second hand devices”
In the next five years, the pre-owned smartphone market is expected to grow three times faster than the new smartphone market. Northladder, the first platform of its kind, is well equipped to meet this demand. With its new investment, the company shows great potential to expand its model on a global scale.