Refurbi raised $4 million to expand its refurbished electronics marketplace from Colombia into Mexico. Latin American-tech fund Latin Leap led the seed extension, with participation from Epic Angels, PSM Impact Ventures, the Inter-American Development Bank and Banco Itaú.
Bogotá-based Refurbi has helped more than 80,000 customers purchase refurbished devices, which account for less than 1% of Latin America’s mobile market, compared to up to 20% in Europe and the US. Device replacement cycles in the region exceed 36 months, and prices for new phones have increased significantly in recent years, according to Latin Leap.
According to Refurbi founder Sebastián Jiménez, the problem isn’t pricing – it’s trust. “Consumers are afraid that the device won’t work properly or that no one will respond if something goes wrong,” he told ImpactAlpha.
Refurbi sources used phones through trade-in programs, tests each device, discloses its exact condition, and backs purchases with a 14-month warranty. The company also has software to manage refurbishment operations for retailers, manufacturers, and telecom operators.
“What we did differently was to focus on reducing the actual risk,” Jimenez said. “Once you remove that risk, adoption comes naturally.”
Circular economy
The deal is the third third circular-economy investment in Latin America for Epic Angels, a 750-member network of female angel investors. The group has also backed MUTA, a B2B platform that digitizes recycling supply chains, and BioPlaster Research, a Yucatán startup that transforms invasive sargassum seaweed into biodegradable packaging.
“Latin America’s circular economy opportunity is fundamentally different,” Epic Angels’ Maaike Doyer told ImpactAlpha. “The business case and impact case are completely aligned, which creates sustainable unit economics and social returns simultaneously.”
The round also added to Promota Social Mexico’s venture portfolio. The Mexico City-based impact investor, backed by a 15-year-old endowment, has increased its focus on climate investments in recent years.”We have increased the scope of our impact,” said IVPSM’s Octaviano Couttolenc. “Now we are doing investments related to climate—not because we are a climate investor, but because of our understanding of the implications that climate change is having on society and communities.”
