Facilitate access to technology by developing the secondary market of used mobile devices while contributing to reduction in electronic waste globally.
E-commerce for used mobile devices already operational in Colombia, Mexico and Peru.
We have more than 27 trade in programs which is our main source of inventory.
Clevercel site has reached more than 450k visitors per month.
Close to US$1.2m in monthly revenue
We carry Apple products, Samsung and other major Android brands
Annual sales, $
Annual net income, $
Holding company (C Corporation) located in Delaware with subsidiary in each country of operation (Colombia, Mexico and Peru)
Number of employees
Problem or Opportunity
There is a latent lack of access to technology in Latam, especially to a significant part of the pyramid. Clevercel aims to facilitate that access while at the same time mitigate e-waste globally by extending the lifecycle of used mobile devices.
Solution (product or service)
There are two drivers that trigger the purchase decision at Clevercel:
(1) economic decision, especially in Latam with high devaluation rates, high inflation rates, all of which impact price of new mobile devices.
(2) environmental decision, especially when 10% of global e-waste is produced in the manufacturing stage of smartphones. So extending the lifecycle of used devices helps reduce carbon footprint by reducing water pollution and CO2 emissions.
Our competitors are usually e-commerce channels like Amazon and Mercado Libre, which are b2c and peer to peer sales, where there is always the concern about the legal background of the phones and lack of warranty for functionality.
Advantages or differentiators
Clevercel value proposition is:
-Competitive pricing, usually below 30%-40% below new retail price
-12 month warranty for optimal functionality
- Broad portfolio of brands, including Apple, Samsung and others
- Online financing
- Exclusive trade in contracts with brands and carriers that enables constant supply of stock
We have a portfolio of Apple, Samsung and other android devices at an avg ticket price of US$150, with a product margin between 25%-30% and a contribution margin (after acquisition costs) between 12-15%. Our revenue for 2022 was US$8m, and our target for 2023 is US$14m. EBITDA still negative, around 4% margin. For 2024, we are targeting US$30m in revenue and 4% positive EBITDA margin. By 2027, we are targeting US$60m in revenue and close to 10% EBITDA margin.
We buy stock directly from OEMs (Original Equipment Manufacturers) by having the exclusivity in handling their trade-in programs for used mobile devices. Across Latam, we have over 27 trade-in programs and we are exclusive partners for Apple, Samsung, and mobile carriers like America Movil (larger mobile carrier in Latam). We sell those devices thru our e-commerce channel called Clevercel. Depending on the country, we have a well defined sales channel structure, not only thru our e-commerce but also linked to other retail e-commerce channels like in Mexico (Amazon, Liverpool, Coppel, Walmart). Clevercel products have some minimum quality requirements, especially in terms of battery, cosmetic appearance and functionality. Devices that don't meet those requirements are sold thru wholesale channels.
Reason for sale
Looking for capital to scale business in existing countries and expand into others as well, including US market
The market for used mobile devices in Latam is over US$3 Billion, representing close to 11 million devices (only smartphones). The share of used vs total smartphones sold in Latam is 8%, vs 21% globally, and vs 30-40% in USA and Europe. Though the economic / environmental concern painpoints are shared not only by all consumer segments, but also by SMEs, we focus our efforts in young people, students, and first time job individuals, all of which are ambitious, dynamic and have a well defined brand aspiration.
Our business is counter-cyclical, which means that in periods of economic uncertainty, high inflation and sky rocket devaluation rates, second hand devices are a good option to pursue.
Risk is always not having constant stock of devices and being dependent on marketing campaigns from brands and carriers to convince people to trade-in their devices.