Servify, a startup that manages the lifecycle of devices for several popular smartphone vendors, including Apple and Samsung in many markets, has raised $65 million as it looks to become a public company in two years.
Singularity Growth Opportunity Fund led the Mumbai-headquartered 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 hasn’t closed, and the startup said a few other investors want to back Servify. It expects to raise an additional $5 million to $10 million in the current round.
The seven-year-old startup, which has raised over $110 million to date, partners with over 75 electronics device manufacturers, including OnePlus and Xiaomi, offering them white-label after-sales services such as damage protection and extended warranty. Partner companies also use Servify’s eponymous platform to offer trade-in, upgrade and financing programs to customers.
Servify, which is operational in over 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, said Sreevathsa Prabhakar, founder and chief executive director 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 with self-repair services. How do such programs affect Servify?
Prabhakar said the self-repair programs of major manufacturers in the market will be “positive” for Servify, as they will continue to charge them for providing spare parts during their self-service repairs. However, such programs may lead to fewer people choosing to trade in and upgrade, as they will be able to extend the life of their existing devices, he said.
Servify, with a workforce of over 700 people globally, claims it is currently on track to achieve annual revenue of over $130 million. The startup is working to become profitable starting next month, he said.
Once it secures 18-20% profitability, Servify plans to submit an IPO, 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 has raised the new funds, but said the startup is “approaching unicorn” status. “To me, all these valuations are still paper valuations. When you go public, real valuation is revealed, he said.
Servify is also looking to use the fresh funds to buy smaller companies. Since its last funding round in September 2020, Servify has acquired a couple of startups, including Noida-based 247Around, which gives the startup access to over 100 kitchen and small appliance manufacturers, and Germany-based WebToGo to bolster its diagnostics capabilities. , according to Prabhakar.
“We have a couple of international targets in mind,” he said without disclosing any names.
“Product protection is no longer an afterthought; in fact, it is quickly taking center stage for OEMs and consumers alike. We therefore see Servify steadily moving towards global leadership in this massive addressable market of over $100 billion and are confident that they will deliver a great result for all of us, says Apurva Patel, Managing Partner at Singularity Growth, in a statement.