Home Business Pioneering Refurbished Electronics Startup, Qarmatek, Raises $3M In Funding Round

Pioneering Refurbished Electronics Startup, Qarmatek, Raises $3M In Funding Round

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The investment will also enable Qarmatek to align with its grander vision of creating a tech-enabled circular economy for e-waste in India while also enhancing the customer experience from the sales to purchase touch points.

Qarmatek, a pioneering refurbished and renewed electronics category, announced that it has raised $3 Million in a funding round led by GVFL (Gujarat Venture Finance Limited) and Caspian Debt. In the preliminary stage, the funds will be utilized towards – expanding and digitizing operational capabilities, to scale across key domestic markets and to foray into B2C operations with MOBEX, a brand by Qarmatek that is emphatically customer centric. MOBEX has already been instituted in Tier 1 and 2 cities of Gujarat fetching impressive results in terms of sales and concept adoption. The brand is now set to replicate the mantra in the B2C markets in neighboring states as well as cities with major urban and cultural influence, with this fresh round of funding.  The investment will also enable Qarmatek to align with its grander vision of creating a tech-enabled circular economy for e-waste in India while also enhancing the customer experience from the sales to purchase touch points. Qarmatek intends to use a portion of the funds towards creating an all-purpose technologically forward infrastructure that will ensure a seamless experience of an embellished B2C journey for the end user, while offering best prices and exceptionally high-quality products.

MOBEX has an expansive network currently of around 4000 smartphone retailers in Gujarat to alleviate their day-to-day operations of sales via E-commerce platforms & offline channels. This network is planned to be scaled up into major cities and reaching to more than 1 lac partners within next couple of years. Considering the absence of a categorized player with similar capabilities and Qarmatek’s fortitude in repairs and refurbishment, MOBEX has already anchored the trade-in mechanism and is in concluding talks with leading OEM’s for direct procurement of OBU’s rendering superior quality devices. The expansion will set stone from Gujarat leading to Maharashtra, Karnataka, Telanganaand other pivotal markets where MOBEX sees, based on extensive research and analysis, a huge potential for sellers and buyers of refurbished and renewed electronics.

Speaking on the occasion, Krunal Shah, Co-Founder and Director, Qarmatek said, “We are thrilled with the support we have received from GVFL & Caspian Debt as we unfold the next phase of our journey. With this round of capital infusion in the business, we look forward to accelerating our ability to serve more customers effectively and swiftly. Appreciating this marvelous breakthrough, we aim to strive towards creating a better workplace environment for all our 800+ family members and focus on their personal as well as professional growth. Today, we as a business can fulfill 200,000 repairs per month but we are geared to take this to half a million repairs per month by the end of the ongoing calendar year. Our focus is to stay ahead of the curve and with our expansion plans underway we are geared to become a future-ready organization with an interplay of advanced technology, enhanced customer experience and sustainability at the heart of all our efforts.”

Mr.Mihir Joshi, GVFL, said, “Qarmatek is re-inventing the wheels of repair and refurbish industry and we are excited to support such a dynamic organization. They are not only encouraging the use and utilization of old electronics but are also harboring the agenda of reducing E-Waste and making our society more conscious even as we push the consumption story for India. Together, we aim to help them expand their footprint and digital presence across the country.”

Adding on to this, Avishek Gupta, Managing Director & CEO Caspian Debt, said, “We are delighted to support Qarmatek in their journey of promoting new era of using repaired and refurbished electronics. Through refurbishment and encouraging reuse, Qarmatek not only reduces the e-waste in the environment but also minimizes CO2 emissions which would otherwise go in production of new phones. The company also makes it possible for the aspirational Indian consumer to own coveted brands and devices in near new condition at affordable prices. They have shown exemplary growth over the years, and we are excited to participate in their journey ahead.”

The funding allocations will aid in the development of a progressive application tied up with multiple categories and diverse choices to empower customers to buy and sell electronics in real-time with the assurance of quality and care that is par excellence. MOBEX has recognized various categories where the competition of their refurbished variants is zero and will be introducing the same in its product portfolio real soon. As MOBEX pursues growth, one of the focus areas will be of exploring additional channels to generate sales and finding better value for its customers and divergence of these multiple channels shall ensure the flow of sales in a viable and continual manner.

India’s e-waste production has risen almost 2.5 times to 3.23 million metric tons in six years to 2019, according to the Global E-Waste Monitor Report 2020.This problem is further exacerbated in wake of the accelerated digital adoption during the ongoing pandemic. MOBEX hopes to not only bring about a shift in consumer behavior, by bringing about more attention to the e-waste challenge we face, but also providing an effective and sustainable solution by creating a market and demand for refurbished electronics in India at scale.

Currently Qarmatek serves customers by working closely with all major electronic brands to offer a seamless repair experience and has built a reputation of delivering superior quality products. All its Refurbished and Renewed products accompany a 1-year warranty and certifies test results cementing the trust in the quality it commits. The fund raise is the first step in laying a stepping stone for more such benchmarks in customer experience and sustainability for the repair and refurbishment of electronics in India.

Source: Business World