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 eyes becoming 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 are looking to back Servify. It anticipates raising another $5 million to $10 million in the current round.
The seven-year-old startup, which has raised more than $110 million to date, works with over 75 electronics device manufacturers, including OnePlus and Xiaomi, and offers them white-labeled after-sales services such as damage protection and extended warranties. Partner firms also use Servify’s eponymous platform to offer trade-ins, upgrades and financing programs to customers.
Servify, which is operational in more than 40 countries, including India, the US, UK, Canada, Saudi Arabia and Turkey, plans to expand to Latin America this financial year and is also exploring a debut in Japan, said Sreevathsa Prabhakar, founder and chief executive officer 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 impact Servify?
Prabhakar said the self-repair programs by major manufacturers in the market will be “positive” for Servify as it will continue to charge them for offering spare parts under their self-service repairs. Such programs, however, may result in fewer people opting in for trade-in and upgrade options as 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 clock an annual revenue run rate of over $130 million. The startup is working to become profitable starting as early as next month, he said.
Once it ensures 18-20% profitability, Servify plans to file for an initial public offering, he said. The current timeline for the IPO is 18 months to two years, he said.
He didn’t disclose the valuation at which Servify has raised the new funds, but said the startup was “nearing the unicorn” status. “For me, all these valuations are still paper valuations. When you go public, real valuation is revealed,” he said.
Servify is also looking to deploy the fresh funds to buy smaller firms. Since its last funding round in September 2020, Servify has acquired a couple of startups, including Noida-based 247Around, which provides the startup with access to over 100 manufacturers in the kitchen and small appliances space, and Germany-based WebToGo to strengthen 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 rapidly taking center stage for both OEMs and consumers. 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 outcome for all of us,” said Apurva Patel, managing partner at Singularity Growth, in a statement.