Helsinki-based Swappie, an online platform that claims to be Europe’s largest iPhone refurbisher, has secured €17M in loan from the European Investment Bank (EIB).
This five-year loan agreement is supported by the InvestEU programme, which seeks to generate over €372B in extra investment from 2021 to 2027.
InvestEU focuses on funding projects that align with EU goals, such as promoting the green transition, boosting competitiveness and innovation, and developing sustainable infrastructure.
EIB Vice-President, Thomas Östros, says, “Swappie is a good example of how we can reduce waste and extend the use of technical appliances, while at the same time making them more affordable. We are pleased to help Swappie to empower customers to buy smart, pay less and reduce their carbon footprint.”
“Swappie expands consumer access to electronics while having a positive impact on the planet. Its concept to reduce e-waste, reuse all functional spare parts and recycle generated waste is fully in line with the EIB’s commitment to supporting a circular economy and sustainable innovations.”
Capital utilisation
The EIB will help Swappie invest in research, development, and robotics to make iPhone repairs faster and more reliable. This helps consumers reduce their environmental impact by supporting recycling and reuse, which is part of a circular economy.
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The loan will also help Swappie improve its refurbishment processes, expand its product range, and grow internationally.
Swappie’s CFO, Lauri Lipsanen, says, “We are immensely grateful for the European Investment Bank’s support through this €17M loan, which signifies a pivotal moment for Swappie as we continue to advance our mission of sustainable technology consumption.”
“This funding will support our research and development efforts, allowing us to further refine our refurbishment processes and extend the lifespan of iPhones, thereby reducing e-waste and minimising the carbon footprint associated with new smartphones.”
“It’s another exciting step forward in our commitment to make quality refurbished electronics accessible and affordable, contributing to a greener planet and a more sustainable future,” adds Lipsanen.
Making refurbished smartphones mainstream
Swappie was founded in 2016 by Sami Marttinen and Jiri Heinonen. The idea for the company came after Marttinen had a bad experience buying a second-hand iPhone online—he paid upfront but never received the phone.
He discovered that many others had been scammed in similar ways. This is why Swappie prioritises safety and reliability in buying and selling refurbished smartphones.
The company claims to be Europe’s largest iPhone refurbisher and an online platform for buying and selling refurbished iPhones. Its goal is to provide high-quality, affordable, and eco-friendly phone upgrades.
Swappie refurbishes iPhones to high standards using advanced technology, reducing environmental waste and offering customers cheaper high-quality devices.
According to an EIB statement, a refurbished iPhone has an 80 percent lower carbon footprint than a new one, and using a phone for an extra year cuts its lifetime carbon emissions by a third.
Operating in countries like Finland, Sweden, Italy, and Germany, Swappie achieved €208M in sales in 2022. The company has expanded its team to over 800 employees and raised €149M in funding from investors.
EIB: Everything you need to know
The European Investment Bank (EIB) is the long-term lending arm of the European Union, owned by its member states. It funds projects that align with EU policy goals, enhancing competitiveness, innovation, sustainable development, social cohesion, and climate neutrality.
In 2023, the EIB Group, which includes the European Investment Fund (EIF), signed €88B in new financing for over 900 projects. These efforts are expected to generate about €320B in investment, support 400,000 companies, and create 5.4 million jobs.
All projects funded by the EIB Group adhere to the Paris Climate Agreement, and the group does not invest in fossil fuels. The EIB Group aims to support €1T in climate and environmental sustainability investments by 2030, as outlined in its Climate Bank Roadmap.
Over half of the EIB Group’s annual financing is allocated to projects that mitigate and adapt to climate change and promote a healthier environment. Additionally, about half of the EIB’s financing within the EU is directed towards cohesion regions, where per capita income is lower.
In 2023, the EIB Group pledged nearly €1B to new projects in Finland, focusing on R&D for large companies, industrial investments, energy-efficient buildings, education infrastructure, and support for small businesses.
This funding, which represents 0.35 per cent of Finland’s GDP, supports investments worth nearly €4.4B. Over the past five years, the EIB Group has provided nearly €8B in financing to Finland.
Brief about the InvestEU Programme
The InvestEU programme offers funding for the EU by leveraging private and public funds to support a sustainable recovery. It mobilises private investments for EU policy priorities, such as the European Green Deal and the digital transition.
InvestEU unifies various EU financial instruments to make funding investment projects simpler, more efficient, and flexible. The programme includes three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal.
The InvestEU Fund, backed by an EU budget guarantee of €26.2B, is implemented through financial partners to increase their risk capacity and mobilise at least €372B in additional investment.
