NorthLadder, a UAE-based digital trading platform for pre-owned electronics, raised $10 million through a convertible note and supporting venture capital funding to boost growth.
CE-Ventures, a unit of investment company Crescent Enterprises, invested in NorthLadder through the convertible note, while Beco Capital, Venture Souq and Dutch Founders Fund provided venture capital financing, the company said in a statement on Tuesday.
Dubai-based Beco Capital invested $5m in NorthLadder’s previous funding round.
The start-up will use new funds to scale up the company’s technology platform, expand geographically and strengthen its business-to-business partnerships.
“We have always envisioned building NorthLadder into a global business. With this latest round of funding, we plan to further strengthen our talent base and expand our market reach in multiple countries including the UAE and KSA [Saudi Arabia]”, Sandeep Shetty, co-founder and chief executive of NorthLadder, said.
“Affordability, driven by trade-ins, is a key enabler for the sale of new devices and we are excited about powering this for our partners, through our unique global business model that ensures the best residual value for second-hand devices.”
The pre-owned smartphone market is expected to outpace the new smartphone market, growing three times more in the next five years, and NorthLadder is “well equipped to meet this demand”, he said.
“With its new investment, the company shows great potential to expand its model on a global scale,” he said.
The global smartphone market posted positive growth for the first time in four years in 2021, with annual shipments rising 4.5 per cent annually to 1.39 billion units, a study by Counterpoint Research showed.
NorthLadder is a digital trading platform that connects customers looking to sell pre-owned electronics including smartphones, laptops and tablets to a global network of buyers, guaranteeing the most competitive price with no hidden charges.
Since its launch, NorthLadder has served more than 30,000 customers. It operates more than 200 trade-in locations and has a network of more than 500 dealers. The company has also secured partnerships with large electronics retailers and is now the leading device trade-in player in the UAE.
“NorthLadder’s journey has been impressive to date, growing to become the leading trade-in player. And, with the UAE being the global hub that it is, the company is uniquely positioned to dominate the regional market and capture a significant portion of the global trade,” Tushar Singhvi, deputy chief executive and head of investments at Crescent Enterprises, said.
“We look forward to supporting the scaling of NorthLadder’s operations and its expansion into other strategic markets, with the overarching mission of reducing the tech industry’s carbon footprint and working towards a more sustainable future.”
CE-Ventures, the corporate venture capital arm of Crescent Enterprises, focuses on strategic investments in early-to-late-stage high-growth companies and venture funds globally.
Laurens Groenendijk, founding partner of Dutch Founder’s Fund, who founded Just-Eat, Treatwell, Miinto and nano-satellite challenger Hiber, said NorthLadder is solving a “complex problem by establishing micro-networks in emerging markets on the demand side of the pre-owned electronics market”.
“Although many companies attempted to disrupt this value chain, NorthLadder’s approach is ingenious and strengthens the circular economy,” Mr Groenendijk said.
“It is a global business, and we also see considerable potential in European markets.”
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