Device management startup Servify raises $65 million in funding led by Singularity Growth
Device management startup Servify has raised $65 million in funding as a part of its pre-initial public offering (IPO) round, led by Singularity Growth Opportunity Fund. Servify provides white-label warranty and after-sales support products to smartphone original equipment manufacturers (OEMs). It entered the appliance after sales servicing space with the acquisition of 247around in February this year. The startup is eyeing a stock market listing in the coming 18-24 months. Existing investors, including Iron Pillar, Beenext, Blume Ventures, DMI Sparkle Fund, and new investor AmTrust participated in the funding as well. According to sources, the latest funding takes the valuation of Servify to roughly $800 million.
Also, the funding round is not closed yet and may see another $7 million in equity infusion from strategic partners such as original equipment manufacturers (OEMs), insurance players, and lenders, according to the company’s founder and chief executive officer (CEO) Sreevathsa Prabhakar. The final closure expected by mid-September will take the funding round size to $72 million. The funding comes at a time when the startup is clocking an annual revenue run rate (ARR) of $130 million and aims to cross $150 million by the end of the ongoing fiscal year., Prabhakar said.
“The goal is to go public in the next 18-24 months and we want to make sure we are in line with all the reporting requirements,” said Prabhakar in an interaction. “We will turn profitable in a few months and want to show sustained profitability when we go public. So, safe to say that when we go public, we will have an ARR of around $280 million, with 15% -20% of it as profits.”. The startup is eyeing to turn profitable over the next quarter.
The latest funds raised will be used for expansion into new geographies of Latin America, the launch of newer affordability offerings for customers, and look at inorganic acquisitions to enter new markets and bolster international presence. Currently, Servify caters to over 180 OEMs in 49 countries, including those in North America, Europe, Turkey, and the Middle East.
The startup is working with loan providers to help OEMs and lenders sweeten the deal for device purchases, and offer services such as device protection and assured buyback for a subscription fee, along with buy-now-pay-later (BNPL) options. It is piloting this model across 190 stores in India and plans to take it to the Middle East and the US.
“We were doing everything in the post-sale experience and wanted to move into the sale-purchase segment. The offering will comprise a subscription and a (buy-now-pay-later) BNPL loan (from lenders) to provide a customer with additional support, including assured buyback of their devices, device protection, and other services,” said Prabhakar.
Prabhakar said the product is available only at offline stores for now since underwriting (of devices) can be real-time. The startup has plans to lend from its books in the future and will look to acquire a non-banking finance company (NBFC) license. However, Prabhakar didn’t share an exact timeline for the same. Servify’s fundraising comes at a time when ecommerce giant Amazon has invested Rs 39.5 crore in re-commerce platform Cashify company filings show.
“Servify truly enables global electronics OEMs to connect and engage with their customers. Product protection is no longer an afterthought. It is rapidly taking center stage for both OEMs and consumers. We, therefore, see Servify steadily moving towards global leadership,” said Apurva Patel, managing partner at Singularity Growth.
Founded in 2021, Singularity Growth Opportunities Fund-I is the first fund promoted by Singularity Asset Management. It has invested across software businesses, including Exotel and WebEngage, and in the direct-to-customer brand MCaffeine.
Also, the funding round is not closed yet and may see another $7 million in equity infusion from strategic partners such as original equipment manufacturers (OEMs), insurance players, and lenders, according to the company’s founder and chief executive officer (CEO) Sreevathsa Prabhakar. The final closure expected by mid-September will take the funding round size to $72 million. The funding comes at a time when the startup is clocking an annual revenue run rate (ARR) of $130 million and aims to cross $150 million by the end of the ongoing fiscal year., Prabhakar said.
“The goal is to go public in the next 18-24 months and we want to make sure we are in line with all the reporting requirements,” said Prabhakar in an interaction. “We will turn profitable in a few months and want to show sustained profitability when we go public. So, safe to say that when we go public, we will have an ARR of around $280 million, with 15% -20% of it as profits.”. The startup is eyeing to turn profitable over the next quarter.
The latest funds raised will be used for expansion into new geographies of Latin America, the launch of newer affordability offerings for customers, and look at inorganic acquisitions to enter new markets and bolster international presence. Currently, Servify caters to over 180 OEMs in 49 countries, including those in North America, Europe, Turkey, and the Middle East.
The startup is working with loan providers to help OEMs and lenders sweeten the deal for device purchases, and offer services such as device protection and assured buyback for a subscription fee, along with buy-now-pay-later (BNPL) options. It is piloting this model across 190 stores in India and plans to take it to the Middle East and the US.
“We were doing everything in the post-sale experience and wanted to move into the sale-purchase segment. The offering will comprise a subscription and a (buy-now-pay-later) BNPL loan (from lenders) to provide a customer with additional support, including assured buyback of their devices, device protection, and other services,” said Prabhakar.
Prabhakar said the product is available only at offline stores for now since underwriting (of devices) can be real-time. The startup has plans to lend from its books in the future and will look to acquire a non-banking finance company (NBFC) license. However, Prabhakar didn’t share an exact timeline for the same. Servify’s fundraising comes at a time when ecommerce giant Amazon has invested Rs 39.5 crore in re-commerce platform Cashify company filings show.
“Servify truly enables global electronics OEMs to connect and engage with their customers. Product protection is no longer an afterthought. It is rapidly taking center stage for both OEMs and consumers. We, therefore, see Servify steadily moving towards global leadership,” said Apurva Patel, managing partner at Singularity Growth.
Founded in 2021, Singularity Growth Opportunities Fund-I is the first fund promoted by Singularity Asset Management. It has invested across software businesses, including Exotel and WebEngage, and in the direct-to-customer brand MCaffeine.
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