Servify, a startup that manages device lifecycles for several popular smartphone vendors, including Apple and Samsung in many markets, has raised $65 million as it aims to become a publicly traded company in two years.
Singularity Growth Opportunity Fund led the Series D funding of the Mumbai-headquartered startup. AmTrust and family offices including Pidilite and existing investors Iron Pillar, Beenext, Blume Ventures and DMI Sparkle Fund also participated in the round.
The round hasn’t closed yet, and the startup said a few other investors are looking to back Servify. It expects to raise another $5 million to $10 million in the current round.
The seven-year-old startup, which has raised more than $110 million to date, has partnered with more than 75 electronic device manufacturers, including OnePlus and Xiaomi, to provide them with white-label after-sales services such as damage protection and extended warranty. Partner companies also use Servify’s eponymous platform to offer customers trade-in, upgrade, and financing programs.
Servifywhich operates in more than 40 countries, including India, US, UK, Canada, Saudi Arabia and Turkey, plans to expand into Latin America this fiscal year and is also exploring a debut in Japan Sreevathsa Prabhakar, founder and CEO officer of the startup, said in an interview.
India, the world’s second largest smartphone market, accounts for 60% of Servify’s business, he said.
Servify — which currently focuses on smartphones, tablets, laptops and wearables — also plans to expand its coverage by servicing home appliances and electric vehicles, he said.
In recent quarters, companies including Apple and Samsung have offered their customers self-repair services. How do such programs affect Servify?
Prabhakar said major manufacturers’ self-repair programs in the market will be “positive” for Servify as it will continue to charge them for offering spare parts under their self-service repairs. However, such programs could lead to fewer people opting for trade-in and upgrade options, as they can extend the life of their existing devices, he said.
Servify, which employs more than 700 people worldwide, claims it is currently on track to reach annual revenues of more than $130 million. The startup is working to turn profitable as early as next month, he said.
Once it achieves 18-20% profitability, Servify plans to file an initial public offering, he said. The current timeline for the IPO is 18 months to two years, he said.
He did not disclose the valuation at which Servify raised the new funds, but said the startup had “almost the unicorn” status. “To me, all these appraisals are still paper appraisals. When you go public, the real valuation is revealed,” he said.
Servify also wants to use the new funds to buy smaller companies. Since its last funding round in September 2020, Servify has acquired a number of startups, including Noida-based 247Around, which gives the startup access to more than 100 manufacturers in the kitchen and small appliance space, and Germany-based WebToGo to bolster its diagnostic capabilities. . , according to Prabhakar.
“We have some international goals in mind,” he said, without disclosing names.
“Product protection is no longer an afterthought; in fact, it is quickly taking center stage for both OEMs and consumers. That’s why we see Servify steadily moving towards global leadership in this huge addressable market of more than $100 billion and are confident they will deliver a great outcome for all of us,” said Apurva Patel, Managing Partner at Singularity Growth, in a statement. .