The French specialist in refurbished high-tech products is studying the possibility of going public next year. However, the timeline is still unclear.
Founded in 2014, the French company Back Market is experiencing a meteoric rise. Specializing in the purchase and sale of second-hand products, the French chain has grown steadily in less than a decade to become one of the benchmarks for second-hand sales.
On his site, the group also presents itself as the European number one in refurbished. Specializing in high-tech products, Back Market has 600 workers. The company, which works with independent resellers, says it sells more than 300,000 products per year.
To ensure its growth, the group has multiplied fundraising. The last dates from the beginning of the year and enabled Back Market to raise 510 million euros, notably from Eurazeo SE, General Atlantic and Goldman Sachs Group Inc.
Valued at more than 5 billion eurosthe company is one of around forty unicorns in France.
To ensure its development, Back Market is already looking for additional funds. According to Bloomberg, citing sources who prefer to remain anonymous, Back Market is seriously considering the possibility of going public.
Several informal discussions with banks have already taken place and an IPO could be envisaged as early as next year. However, no precise timetable has been revealed. The group also seems particularly cautious. According to a company representative, such an operation “is not the company’s top priority in the near future”.
Company officials are likely watching the current development in the tech market very carefully, where many large companies have seen their valuations plummet in the space of a few months. A tension which would also translate into the intentions of carrying out an IPO. According to Bloomberg, the companies having taken the steps during the first half of the year are approximately half as many as for the same period last year.
Overall, the reconditioning and second-hand sector has been doing well for several years. Last April, the German Grover, Back Market’s main European competitor, realized a fundraising of 330 million of dollars. Vinted, the Lithuanian second-hand clothing specialist, posted a valuation of more than 4.5 billion dollars in May 2021.