How Dubai-based Revibe aims to revolutionize the refurbished market

Revibe, a Dubai-based refurbished electronics retailer, was founded with a strong motivation to address the urgent problem of environmental protection.

Co-founder Hamza Iraqui was amazed by the enormous amount of electronic waste and its harmful impact on the environment.

He decided to create a business model that would not only focus on sustainability, but also aim to provide consumers with affordable, high-quality electronics products.

“The key motivation and turning point was a combination of frustration with the disposable nature of electronic devices, the high cost of purchasing new devices and a passion for sustainability,” says Mr Iraqui National.

He co-founded Revibe with his close friend Abdessamad Ben Zakour in September 2022. The two co-founders, who met while studying in France, leveraged their extensive experience in consulting and finance to drive the company’s goals.

Revibe is a business-to-consumer marketplace that connects buyers with professional renovators who are constantly audited by outside professionals to ensure the quality of their products. This allows consumers to buy “premium, sustainable appliances at almost half the price,” says Mr. Iraqui.

Revibe products, which include smartphones, laptops and tablets, are rated using a three-level rating system. The ratings are excellent – ​​like new, top technical condition and battery health above 95 percent; very good – light scratches visible from a distance of 20 centimeters, technical condition above average, battery health above 90 percent, good – visible scratches and possible dents, average technical condition and battery health above 85 percent.

According to the company, all devices are 100% tested, work properly and are covered by a one-year warranty.

“Our goal is to prove that refurbished electronics can be as reliable as new,” says Mr. Iraqui, a former partner at Boston Consulting Group.

“A major industry issue is how to ensure quality and ongoing customer service… especially at scale as the business grows. Revibe has developed a scalable model inspired by successful examples from other regions where the quality of refurbished products is almost as good as the quality of a new device.”

Refurbished electronics include products returned to manufacturers due to technical defects or for recycling. They are checked for functionality and refurbished, with parts repaired or replaced as necessary, so they can be resold, essentially as new.

However, used products are sold without being checked or repaired.

Smartphones are among the most popular refurbished electronic devices sold globally. According to Custom Market Insights, the market size for refurbished and used mobile phones in the Middle East and Africa is expected to reach almost $12.3 billion by 2030, from $6.1 billion in 2022.

The refurbished electronics market also plays a role in combating climate change by reusing components, reducing the need for raw materials such as minerals and plastics.

According to the American non-profit organization Comprenew, this process not only minimizes water and air pollution, but also helps reduce electronic waste.

Mr Iraqui said he intends to spread the culture of circular economy in the region through Revibe.

A circular economy is an economic system that focuses on reducing the exploitation of natural resources, minimizing waste and regenerating natural systems.

According to the Global Commission on the Economy and Climate, adopting circular economy principles could deliver $26 trillion in economic benefits by 2030.

The refurbished electronics market, currently estimated at $6 billion globally, is expected to reach $20 billion by 2030, Mr Iraqui says. Growing consumer awareness of sustainability and cost savings is a key driver of growth in the industry.

“Revibe aims to revolutionize this market by continuously expanding its product range, increasing the efficiency of quality control and investing in innovative marketing campaigns to reach more consumers.

“Our long-term plan is to enter new markets and set global industry standards for the quality of refurbished electronics,” he added.

The company was founded with an initial investment of $2.3 million from external sources, with the main investors being Egyptian Flat6Labs and Paris-based venture capital fund Resonance. Their support was crucial to getting the operation up and running and scaling quickly, explains Mr. Iraqui.

With its recently announced $7 million Series A funding round, Revibe has raised a total of $10 million from outside investors.

“This capital has been instrumental in growing our infrastructure, expanding our product range and streamlining our marketing efforts… We just completed a Series A fundraising, so we don’t plan to raise capital this year, but probably next year as we continue our rapid growth and expansion,” says Mr. Iraqui.

The startup intends to use the fresh capital in several key areas, such as expanding its product portfolio, improving customer service, enhancing supplier quality control processes and strengthening marketing activities.

The company also plans to increase its headcount to cope with the growing workload.

“We plan to triple our headcount across segments, including customer service, supplier relations, technology and marketing,” he added.

Despite the successful period, Revibe has encountered obstacles. One of the main challenges was ensuring a steady supply of high-quality used electronics. The company overcame this by partnering with reliable suppliers and investing in improving their processes and the quality of their devices.

“Moreover, the (poor) perception of refurbished products in the market was an initial hurdle, which we had to overcome by applying rigorous quality control and marketing campaigns to build consumer trust,” says Mr Iraqui.

Revibe operates in the United Arab Emirates, Saudi Arabia and Kuwait. Expansion plans include entering new markets in the Middle East and North Africa region in the coming months.

The company has sold more than 30,000 refurbished devices, growing almost 10-fold over last year. It has helped save more than 2.4 million kilograms of carbon dioxide emissions while saving consumers more than $6 million, Mr Iraqui said.

He says Revibe sees increasing competition as a “catalyst for innovation and improvement.”

“By watching and learning from our competitors, we are constantly improving our offering and customer experience… we are at a stage of maturity in the market where competition is healthy, and we are better off with more players pushing and educating the market on the benefits of refurbished electronics.”

He says Revibe’s focus on quality and sustainability allows it to carve out a “unique niche” in the market.

Q&A with Hamza Iraqui, Co-Founder of Revibe

Where do you see yourself in 10 years?

We envision Revibe as a leading regional brand in the refurbished electronics market, known for our commitment to sustainability, quality and innovation. Our goal is to set industry standards and inspire other companies to adopt sustainable practices.

Are you a risk taker or a cautious entrepreneur?

I believe in taking calculated risks. While we are cautious in our decision-making, we also recognize the importance of seizing opportunities that align with our vision and growth strategy. This balance allows us to innovate while maintaining strong and stable business fundamentals.

What is your vision for the company?

Our goal is to reduce electronic waste and promote sustainable practices throughout the industry. Through continuous innovation and improvement of our offerings, we strive to have a positive and lasting impact on the environment and the electronics market.

What successful startups would you like to found and why?

Companies like Warby Parker and Allbirds inspire us with their innovative approach and commitment to sustainability. Both have successfully revolutionized their industries by promoting quality, affordability, and environmentally friendly practices. Their success stories demonstrate the potential of combining business acumen with a strong commitment to sustainability, which aligns with our vision for Revibe.

What new skills did you acquire while establishing your startup?

I gained valuable skills in many areas, especially marketing, customer service, and team leadership. These skills were crucial in dealing with the challenges of starting and growing a business.

What is your motto for success?

Stick to your vision, be flexible and always put quality and customer satisfaction first. These principles guide our decisions and help us stay focused on our goals, ensuring we deliver value to our customers and stakeholders.

Who is your role model?

Elon Musk is my role model for his relentless pursuit of innovation and sustainability. His commitment to pushing the boundaries of technology and his vision for a sustainable future inspire us to strive for excellence and make a significant impact on our industry.

Updated: July 8, 2024, 4:00 AM