Servify, a startup that manages the device lifecycle for several popular smartphone vendors including Apple and Samsung in many markets, has raised $65 million as it plans to go public in two years.
Singularity Growth Opportunity Fund led the Mumbai-based startup’s Series D funding. 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 isn’t over, and the startup said several other investors want to back Servify. Another $5 to $10 million is expected to be raised in the current round.
The seven-year-old startup, which has raised over $110 million to date, works with over 75 electronic device manufacturers, including OnePlus and Xiaomi, and offers them white-label after-sales services such as damage protection and extended warranty. Partner businesses also use Servify’s eponymous platform to offer customers trade-in, upgrade and financing programs.
Servewhich operates in more than 40 countries, including India, the US, the UK, Canada, Saudi Arabia and Turkey, plans to expand into Latin America this financial year and is also exploring a debut in Japan, said Sreevatsa Prabhakar, founder and chief executive an employee of the startup, 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 provided their customers self repair services. How do such programs affect Servify?
Prabhakar said the self-repair programs from the major manufacturers in the market will be “positive” for Servify as it will continue to charge them for offering spare parts in their self-service repairs. However, such programs may lead to fewer people choosing trade-in and upgrade options because they will be able to extend the life of their existing devices, he said.
Servify, with a workforce of more than 700 people globally, claims it is currently on track to achieve an annual revenue rate of more than $130 million. The startup is working to become profitable as early as next month, he said.
After securing an 18-20% yield, Servify plans to file for an initial public offering, he said. The current timeline for an 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 is “close to unicorn status.” “For me, all these grades are still paper grades. When you go public, the true valuation is revealed,” he said.
Servify is also looking to use the fresh funds to buy smaller businesses. Because you are the latest round of funding in September 2020, Servify acquired several startups, including Noida-based 247Around, which gives the startup access to over 100 manufacturers in the kitchen and small appliances space, and Germany-based WebToGo to boost its diagnostics capabilities, according to Prabhakar .
“We have several international targets in mind,” he said, without naming names.
“Product protection is no longer an afterthought; in fact, it is quickly taking center stage for OEMs and consumers alike. That’s why we see Servify steadily moving towards global leadership in this huge addressable market of over $100 billion, and we’re confident they’ll deliver a great outcome for all of us,” said Apurva Patel, managing partner at Singularity Growth, in a statement.