French startup Back Market has raised one other mega spherical of funding. In May, the corporate raised a $335 million Series D spherical. Today, the corporate is saying a $510 million Series E spherical, which values the corporate at $5.7 billion.

If you’re not conversant in Back Market, the corporate operates a market of refurbished electronics units — principally smartphones. In different phrases, for those who suppose smartphones are costly, you may get a cellphone that’s nonetheless in good situation with out paying full worth.

There are many the explanation why shoppers may purchase a cellphone on Back Market as a substitute of shopping for a brand new cellphone from a provider or smartphone producer. In addition to saving cash, many shoppers suppose new telephones solely characteristic incremental updates in comparison with earlier technology fashions.

Many clients additionally wish to keep away from producing extra waste and select a used system for that motive. Many outdated smartphones merely find yourself in a drawer in any case. A brand new battery and typically a brand new show may be sufficient to show an outdated system into a pretty refurbished cellphone.

Back Market doesn’t refurbish units straight. Instead, third-party corporations act because the sourcing companions for Back Market. By itemizing their stock on Back Market’s market, they’ll discover clients extra simply.

On the opposite finish of the transaction, clients purchase units by Back Market as there’s a 30-day a refund assure. Overall, 6 million clients have bought a tool on Back Market.

Sprints Capital is main at the moment’s funding spherical with present traders additionally taking part, equivalent to Eurazeo, Aglaé Ventures, General Atlantic and Generation Investment Management. The French tech ecosystem has been on a roll as PayFit, Qonto and Ankorstore additionally introduced that that they had raised lots of of thousands and thousands of euros every over the previous couple of days.

“Our goal is to make refurbished electronics the first choice for tech purchases. We expect to see a similar development in the electronics market as we have witnessed in the pre-owned car market in America, where consumer confidence in buying second-hand vehicles has resulted in sales that have increased twofold compared to new car sales,” co-founder and CEO Thibaud Hug de Larauze mentioned in an announcement. “The support and confidence of these funds, together with our growing customer base, marks an important step in Back Market’s journey, and more importantly, for the circular economy as a whole.”

One metric that’s significantly essential for Back Market is the typical failure price. Right now, the corporate estimates that it has a failure price of about 4%, which implies that one in each 25 telephones doesn’t work as anticipated in a technique or one other. That’s why customer support is vital with regards to buyer satisfaction. The firm additionally estimates that new units have a 3% failure price.

The startup expects to double in measurement with a particular concentrate on the U.S. market — it at present has 650 staff. Back Market operates in 16 international locations, together with many European markets, the U.S. and Japan.