Back Market, the second largest French startup, is considering the stock market
A final round of private financing could take place before the operation. Back Market would then take the first position ahead of Doctolib in terms of valuation.
On the podium of the biggest French startups, the unicorns are jostling. Back Market, neck and neck with Doctolib and Contentsquare, is valued at $5.78 billion thanks to its platform for purchasing refurbished tech products. At the beginning of next year, the Parisian company could go public. According to internal sources, quoted by Bloomberg, Back Market would have discussed informally with banks to prepare for the operation.
A new fundraising could come before Back Market goes public and goes public. The market is gloomy. Venture capitalists are much less motivated in the face of central bank rate hikes. But Back Market claims three-digit growth every year since its launch in 2014, enough to give confidence. Its pace of financing operations has been frenetic since 2020.
We remember the $110 million ticket with Goldman Sachs, but also the 276 million euros in May 2021 which allowed it to exceed a billion dollars in valuation. Since then, 450 million dollars have been injected again at the start of the year, to fuel the progression of the unicorn to more than 5.7 billion dollars in valuation.
With its 650 employees, the company has begun to expand internationally with offices in New York and Berlin. Its platform is available in the United States (since the beginning of the year), Japan, Great Britain and Germany, in addition to France. Another very strong indicator point for a company at the IPO stage. Many are waiting to achieve international exposure before seeking to go public.
A comparison with the used car market
What appeals to Back Market investors and executives most is the market's growth prospects. Currently, only 10% of electronics sales come from refurbishment. However, “in the automotive market, 70 % of vehicles are sold second-hand, said Thibaud Hug de Larauze, CEO and co-founder of Back Market, in a exchange with Les Echos last January.
For the time being, the Back Market teams did not want to respond to the Bloomberg article. A spokesperson simply indicated that an IPO is not among the “highest priorities in the near future. Bloomberg reported that of all European IPOs in the past year, their share prices have fallen by an average of 42% to date.
On the stock market and among private investors, the difficulties are there. Many companies preferred to delay their IPO and others, like Deezer in France, which lost more than 50% of its value.