This YC-backed startup wants to be the “Amazon” for second-hand smartphones

Eze, a YC-backed B2B market, is connecting retail shops dealing in second-hand smartphones and electronics with world electronics producers and suppliers. In June, the startup raised $3.7 million.

For over two years, Joshua Nzewi and David Iya ran a smartphone wholesale enterprise in the U.S. and determined to start transport second-hand units outdoors their base. But they quickly realised deeper points that plagued the second-hand smartphone market, particularly in Nigeria, the place the duo initially hail from. Thousands of outlets in Nigeria promote refurbished smartphones shipped from different nations and bought in markets like Computer Village in Lagos. But these retailers cope with issues akin to logistics, restricted provide, pricing uncertainty in addition to fee and belief points. So in 2020, Nzewi and Iya based Eze, a B2B market that connects world ma suppliers with retailers dealing in second-hand smartphones and electronics akin to laptops, tablets, wearables, and different units. 

“Think of us as eBay or Amazon or even like a Jumia. A buyer comes to our platform and sees all the different prices for several devices and makes a bid. If the seller accepts the offer, payment is made and the transaction is done,” Nzewi instructed TechCabal over a name.  Eze takes a minimize from every transaction completed on the platform. 

According to Nzewi, the YC-backed startup has bought over 500,000 units since its launch in early 2021 and constructed a presence in over 15 nations together with the United States and Nigeria, its greatest market. He claimed over 50 companies in Computer Village are presently registered on the platform. Though units listed on Eze are priced in {dollars}, Eze presents forex conversion: patrons will pay of their native forex together with naira whereas sellers are paid of their settlement forex. Nzewi added that Eze has a fintech subsidiary presently obtainable in the United States, Eze Capital designed to assist companies in the smartphone wholesale enterprise scale their operations. 

What’s completely different with Eze?

Buying second-hand electronics is difficult contemplating the danger of getting bought substandard or faux merchandise. To overcome customers’ belief points, Eze operates a grading course of to verify that each one devices up for sale are in good situation and real, in accordance to Nzewi. “We vet all the devices and test them before they are shipped to the buyers. For every transaction, we safely hold the funds in escrow until the buyer confirms the delivery. We also do a rigorous check on all sellers on our platform to ensure that they are legitimate,” he mentioned. Nzewi added that there’s a normal 30-day guarantee on the merchandise and a return coverage for clients in conditions the place devices get broken in transit. The firm companions with FedEx for logistics in the U.S., Europe, and Southeast Asia whereas utilizing third-party logistics companies throughout its Latin American and African markets. 

Though Eze is a B2B market, Nzewi mentioned the firm has the customers in thoughts. According to Counterpoint Research’s Global Refurb Smartphone Tracker, refurbished smartphone gross sales grew 5% globally in 2022, with Apple gaining 49% of the second-hand market.  “We know that the people that these retail stores are selling to are the consumers. And so if we can reduce the costs as much for the retail stores, and we can improve the quality as much of the retail stores, the end consumers are the ones that benefit at the end of the day,” he mentioned.

Expanding operations

In June, the YC-backed startup raised $3.7 million in a seed spherical with backers akin to Y Combinator, Right Side Capital, C2 Ventures, Boro Capital, EVPI Investments, Itochu, Jack Greco, and different angel traders. Nzewi instructed TechCabal that a lot of the funding has gone to getting new hires and increasing the firm’s gross sales operations. “And then we’re also looking to set up a second facility, although we’re not sure of the location yet,” he added. According to the International Data Corporation (IDC), shipments of used smartphones will attain a market worth of $99 billion by 2026, Eze is betting that it’ll reap the benefits of this projected development by including new merchandise and creating recent partnerships with transport corporations to enhance gross sales on its platform, in accordance to Nzewi.