Austrian startup's current standing today?
Refurbed, the popular platform for refurbished electronics, has come a long way since its inception in 2017. Founded by Peter Windischhofer, Kilian Kaminski, and Jürgen Riedl, the company has experienced ups and downs, but continued to thrive, trading products worth €2 billion since its inception.
The platform, initially focusing on electronics, expanded its offerings to include strollers, children's bicycles, and even kitchen appliances. However, electrical appliances remain the bestsellers on the website.
As Refurbed ventured into new global markets, it faced several challenges related to different languages, currencies, and regulatory environments. The company has had to localize its website, customer support, and marketing materials into multiple languages to build trust and facilitate purchases.
One of the most significant challenges is handling transactions in various currencies. This requires integration with multi-currency payment gateways and dynamic pricing systems that reflect exchange rate fluctuations. Affordability and competitive pricing are crucial, especially since refurbished devices compete with mid-range new products.
In regions such as Africa, logistical and regional trust barriers pose challenges, impacting conversions and customer satisfaction. Building customer trust through reliable last-mile service is essential in these regions.
Regulatory and tax considerations also complicate operations and financial planning. Companies expanding internationally must navigate tax regimes and regulations, which may be an obstacle to shifting or scaling operations.
Refurbished electronics on the Refurbed platform are overhauled and sold, potentially up to 40 percent cheaper than new ones. This cost-effectiveness, combined with the environmental benefits—refurbishment reducing CO2 emissions by 83 percent compared to manufacturing a new device—has contributed to Refurbed's success, achieved through strict control of approximately 300 partner companies.
In February, the company announced plans to lay off around 20 percent of its workforce to become "leaner and more efficient for long-term growth". Currently, the CEO reports having 250 employees.
Despite these challenges, Refurbed continues to expand its product range and further expand within Europe. However, the international business was scaled back to focus on the German-speaking region due to the challenges posed by different languages and currencies.
Refurbished still holds 30% of the company, with the rest belonging to international investors from the USA and Europe. The company completed its first round of financing just a few months after its founding in 2017, and is now the fastest-growing online platform in the German-speaking region.
Entrepreneurship, according to Peter Windischhofer, always comes with challenges, and the challenges faced by Refurbed are not limited to the early stages. The company complains about the bureaucracy in Austria, which also deters increased international investors.
In 2022, Refurbed launched a new business line with clothing made from recycled materials, but it was abandoned after about a year due to high clothing prices and limited selection. The founders of Refurbished still hold 350 employees working across Europe at the end of 2024.
The European Union's legal framework is largely the same across member states, and Windischhofer hopes that European politics will further harmonize to make it easier for companies like Refurbed to grow across borders. The company plans to continue expanding its product range and further expand within Europe.
- The company expanded its offerings beyond electronics, venturing into strollers, children's bicycles, and kitchen appliances, but electrical appliances remain the best-selling items on the Refurbed website.
- Handling transactions in various currencies is one of the most significant challenges faced by Refurbed, requiring integration with multi-currency payment gateways and dynamic pricing systems.
- In regions like Africa, logistical and regional trust barriers pose challenges to Refurbed, with building customer trust through reliable last-mile service being essential to overcome these challenges.
- The founders of Refurbished, despite the challenges faced, continue to expand the company's product range and further expand within Europe, and they hope for a more harmonized European political climate to make it easier for companies like Refurbed to grow across borders.
