Servify, a startup that manages device lifecycles for several popular smartphone vendors including Apple and Samsung in multiple markets, has raised $65 million as it plans to go public in two years.
The Singularity Growth Opportunity Fund led the Mumbai-based startup’s Series D funding. AmTrust and family offices including Pidilite and existing investors Iron Pillar, Beenext, Blume Ventures and DMI Sparkle Fund also participated in the round.
The cycle is not over, and the startup said a few other investors are looking to back Servify. It plans to raise an additional $5-10 million in the current round.
The seven-year-old startup, which has raised more than $110 million to date, works with more than 75 electronics manufacturers, including OnePlus and Xiaomi, and offers them white-label aftermarket services such as protection. against damage and extended warranties. Partner companies also use Servify’s eponymous platform to offer trade-ins, upgrades, and financing programs to customers.
Servify, which is operational in more than 40 countries, including India, the United States, the United Kingdom, Canada, Saudi Arabia and Turkey, plans to expand into Latin America this fiscal year. and also plans to debut in Japan, said Sreevathsa Prabhakar, founder and CEO of the startup, in an interview.
India, the world’s second-largest smartphone market, accounts for 60% of Servify’s business, he said.
Servify — which currently focuses on smartphones, tablets, laptops and wearables — also plans to expand its coverage by servicing home appliances and electric vehicles, he said.
In recent quarters, companies such as Apple and Samsung have been providing self-repair services to their customers. What is the impact of these programs on Servify?
Prabhakar said self-repair programs from leading manufacturers in the market will be “positive” for Servify as it will continue to charge them for offering spare parts as part of their self-service repairs. Such programs, however, could reduce the number of people opting for trade-in and upgrade options because they can extend the life of their existing devices, he said.
Servify, with a workforce of over 700 people worldwide, says it is currently on track to record annual revenue of over $130 million. The startup is aiming to become profitable as early as next month, he said.
Once it secures an 18-20% return, Servify plans to file an initial public offering, he said. The current IPO timeline is 18 months to two years, he said.
He did not reveal the valuation at which Servify raised the new funds, but said the startup was approaching unicorn status. “For me, all these valuations are still paper valuations. When you go public, the true valuation is revealed,” he said.
Servify is also looking to deploy the new funds to buy smaller companies. Since its last funding round in September 2020, Servify has acquired a few startups, including Noida-based 247Around, which gives the startup access to over 100 kitchen and small appliance manufacturers, and WebToGo , based in Germany, to strengthen its diagnostics. abilities, according to Prabhakar.
“We have a few international targets in mind,” he said, without disclosing names.
“Product protection is no longer an afterthought; in fact, it’s quickly taking center stage for OEMs and consumers alike. We therefore see Servify gradually evolving into global leadership in this massive $100 billion+ addressable market and we are confident that they will deliver a great outcome for all of us,” said Apurva Patel, Managing Partner of Singularity Growth, in a statement.
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