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Getmobil raises $4M to refurbish and resell used phones in Turkey
Think quick — how much does a top - of - the - channel iPhone 15 Pro Max cost ? If you said around $ 1,600 , you ’d be right , but only if you ’re based in the U.S. In Turkey , the same phone willset you back almost $ 3,000 . That interruption introduces a fantastic chance for arbitrage — and a lively 2d - hired man and refurbished market . Getmobiljust raised $ 4 million to decriminalise earpiece refurbishing inside the country .
“ The Turkish government want to decrease the trade deficit , ” excuse Mehmet Uygun , CEO and founder at Getmobil . “ The government activity want to create a orbitual thriftiness . They do n’t require the client to buy brand new phones , because whenever a customer buy a brand fresh telephone , the one dollar bill goes out of the country . ”
worldwide economics and craft policy is deeply riveting , and can cause some really uncanny quirks in local mobile phone markets . In 2010 , for good example , Argentina introduced a set of rule that mean that if you wanted to betray merchandise in the rural area , you ’d have to manufacture there . That had a ton of unusual impression ; English - spoken language book became almost impossible to buy or devilishly expensive ( I remember paying $ 65 fora hard - copy of Walter Isaacson ’s life story of Steve Jobsin a Buenos Aires book store — which sold for about $ 29 in the U.S. at the clip ) . It also have in mind that Apple yeeted out of the market completely , choose not to sell its iPhones in Argentina . And suddenly , long after everybody else had more or less forget BlackBerry even existed , thephone stain had a resurgence in the country when it decided to construct an assembly plant there .
The same thing is happening in Turkey at the moment ; Turkey , desperate to keep its GDP within the body politic ’s borders , has put a hefty import levy en masse on earpiece . It ’s not easy to get around those limitations either — if you purloin a telephone set into the land , itsIMEIwill be blocked from the three major networks after 120 days .
patently , citizenry still need phones , but , unwilling or ineffectual to pay the unbelievably high-pitched meaning taxes , they seek other solutions . Getmobil had its humble beginnings as a modest phone fixing store , and has since develop into one of the run due east - Department of Commerce platform in Turkey , specializing in the cut-rate sale of refurbished electronics .
The lead investor , the slightly confusingly namedDutch Founders Fund(DFF ) , place in Getmobil ’s . “ While DFF is base in the Netherlands , our focal point at DFF lies in investing in B2B marketplaces during their seed phase , ” says Hidde Hoogcarspel , carbon monoxide - founder and managing partner at DFF . “ Our portfolio troupe are not only located across Europe but also in regions such as Dubai and Egypt . These market place typically mesh across mete and sometimes even globally . ”
Where there’s friction, there’s opportunity
As the Getmobil laminitis navigated the complexness of the electronics repair market , they identified a meaning gap between the high price of brand name - Modern devices and the consumer ’s desire for more economically feasible option . This realization move a pin away from merely repairing gadget to refurbish and selling them , thus lay the groundwork for what would become Getmobil ’s center business theoretical account .
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In putting up high tariff , the Turkish government create a grey market : citizenry were betray and buying earphone with immediate payment , none of which was reported to the government . The unspoilt thing was that the money stay within the rural area ’s borders , but obviously , nobody was collecting taxes along the style , so that caused a new job : Yes , the money was circular , but none of it was leaking into the area ’s tax coffers .
“ Turkey is an absolute outlier refurbish market . The price of a new iPhone in Ankara is far higher than in any other space in the cosmos . The governance has created a unique and far - extend to regulatory framework and inducement scheme , and importee are modified , ” explain Hoogcarspel . “ The stately refurbishing sector in Turkey is still in its former stages ; theinformaltrade is thriving and is estimated to stand out the full securities industry size of $ 7 billion for new equipment gross revenue . Tens of thousands of merchant operate within this informal section . ”
Eager to get the situation under ascendence , the authorities bring in some big changes , including some novel regulations , revenue enhancement incentives and opportunities . In 2021 , Turkey introduced a set of rule that significantly bolster up the refurbish electronics market , creating a more structured and reliable framework for companies operating within this sphere . These regulatory alteration were framed as encouraging sustainable consumption practices , enhance the lineament and dependability of refurbished devices and reduce the environmental impact of electronic waste .
“ [ The Turkish government activity ] introduced a refurbishment center regulation . They say ‘ if you build the refurbishment center with some specific standard , we will not take 20 % in taxes , we will take 1 % , ” explain Uygun . In addition , the government made it possible for the vetted refurbishment centers to provide installment payments — rather than having to pay for the devices in full . That ’s over-the-top , the founders excuse , because consumer credit entry is highly regulate in Turkey . They say that Apple can not offer instalment plans .
Getmobil ’s growth flight has been remarkable , driven by a combining of strategic foresight , operating excellence and a deep understanding of the Turkish electronics — and regulatory — market . The company ’s rise is qualify by its ability to offer consumers high - timbre , freshen up electronics at competitive cost , thereby occupy a critical market gap . This time value suggestion helped endear Getmobil to consumer , and has positioned the company as a lively player in Turkey ’s electronics sector . And , presumably , the regime is excited to be one step nearer to being able to shape the out - of - control 2d - hand marketplace .
Winners: Local economy and the environment
While there ’s petty question that the main drive effect behind the government ’s regulations is revenue , forcing a more robust resort and second - paw market has a turn of irrefutable side effect , such as a striking step-up in operable life of devices , and a significant reducing of e - wasteland .
Before the regulation , the freshen up electronics food market in Turkey was disorderly and disconnected , and the quality and warrantee reporting of 2d - helping hand gimmick was highly varying . The new frameworks put in stead established stringent standard for refurbishing processes , include timber checks , warranty requirements and after - sales serving . This legislative surround has played a pivotal office in level the performing field of operation . By represent egg with the government ’s regulations , Getmobil grease one’s palms itself an edge — by promising to stick to the rules , adhere to high standards of calibre and client service , the ship’s company got itself a tremendous competitory vantage .
By aligning the interest of the customers ( cost and quality ) , the administration ( power to keep money inside Turkey , and collect some taxes along the fashion ) and Getmobil , everybody wins . recycle , repairing , refurbishing and recycling extend the circular economy to a broader user base and means that the environment gets a niggling boost , too .
Navigating the intricacies of Turkey ’s electronics securities industry presents a unequalled set of challenges and opportunities for Getmobil . The team tells TechCrunch that the pervasive black grocery continues to be a bounteous challenge : This shadow economic system not only undercuts prices of legitimate refurbished electronics but also often compromises on quality and after - sales services , posing a important scourge to consumer trust . Moreover , stay abreast of and compliant with the evolving regulative environs in Turkey adds another layer of complexity to Getmobil ’s operation .
Dependent on regulation
Of course , the first step toward suppressing the smutty market was creating an choice for it , and that ’s where the regulations and Getmobil ’s round of support comes in .
For the investors , it stay to be seen whether this is a good investment . DFF intelligibly believes that there ’s a huge opportunity here , but in the process , it is investing in a business that ’s basically made possible by a government regulation that subdue cross - border business deal . Turkey is n’t a member of the EU ( conversations stall out overalleged human rights violations pull by the Turkish administration ) , but if it were to become a member , the entire commercial enterprise model for Getmobil fall apart : EU countries can not levy trade tariffsfor grumpy - border import and exports , and without that , it ’s easy to imagine the Turkish marketplace getting flood with used and new electronics price the same as in the remainder of the EU .
Whether or not Getmobil ’s future is secure calculate exclusively on geopolitical events and the management of tomorrow ’s patronage duty farting .
