AmTrust, the family office of Pidilite, and existing investors including Iron Pillar, BEENEXT, Blume Ventures, and DMI Sparkle Fund also participated in the round
The raised funds will be used to expand the business in international markets including Latin America and Japan
Including the latest fundraising, Servify has raised over $100 Mn funding to date
Device management platform Servify has secured $65 Mn in its ongoing Series D funding round led by Singularity Growth Opportunity Fund.
AmTrust, the family office of Pidilite, and existing investors including Iron Pillar, BEENEXT, Blume Ventures, and DMI Sparkle Fund also participated in the round.
The raised funds will be used to expand Servify’s business in international markets including Latin America and Japan. The fund will also be used to strengthen Servify’s technology platform and prepare the startup to tackle pandemic-like situations in the near future.
Historically, most of the OEMs (Original Equipment Manufacturers) do not offer any post-purchase services to customers, claims the startup. “OEMs always thought that making great products and selling them was important. Anything after that was more of an obligation for them,” said Sreevathsa Prabhakar, founder of Servify.
In a bid to improve the after-sales experience for customers, Prabhakar set up Servify in 2015. The startup’s offerings include device protection, product buybacks and device exchange, among others. It is operating across the world including India, the US, Canada, China, Middle East, and Europe.
“Rather than becoming a B2C brand, we thought of partnering with brands and managing the whole process right from structuring to manufacturing to getting everybody on a common platform thereby, providing technology to manage as well as underwrite the risk through our insurance and risk partners,” Prabhakar shared.
Servify originally white labels (process of building a product that is rebranded and sold by other companies to consumers) after-sales services with brands thereby, offering device care and upgrade, assured buyback programs and other allied services to the end customers.
Including the latest fundraising, Servify has raised over $100 Mn funding to date.
Servify also intends to use the raised capital to scale its latest offering that enables product purchases (such as no-cost EMIs and instant discounts, etc.) to customers.
Expansion Plans In India & Abroad
In the first three years, Servify only operated in India and gradually expanded into international markets. It is presently working with over 75 clients globally including Apple, Samsung, OnePlus, Xiaomi, HP, Vivo, Realme, Nokia, Etisalat, Croma, Walmart, Reliance Retail, Amazon and Flipkart, among others.
Servify claims to have inked a contract with Samsung and HP to operate in 40 countries and over 36 countries, respectively.
“In the last few years, we have started scaling outside India. India is a cost and value-conscious market. The average selling prices (ASP) of a product is much lower in the country, for example, a smartphone ASP in India is INR 15-18K while in the US, the smartphone ASP is $800,” Prabhakar informed.
Prabhakar also informed that the international market has contributed to 40% of Servify’s revenue in 2022. While, in the next two years, nearly 80-85% revenue will come up from international markets and around 10% from India.
While selling its after-sales services via other brands, Servify keeps half of the product income. For example, a customer buys Apple Care+ services for INR 10K annually, then, out of INR 10K, INR 5000 goes into the pocket of Servify while INR 2500 goes to Apple and the remaining amount (INR 2.5K) goes to retail channels for expansion and sales.
Servify primarily deals in smart products including smartphones, smartwatches, ipad, computers and laptops, among others. It has recently introduced appliances categories such as camera, fitness equipment and kitchen appliances. It also asserts that nearly 80% of its business comes through smart products.
Its Future Outlook
According to a report, India’s after-sales market is currently pegged at $4 Bn while the global after-sales market stands at $40 Bn as of today (2022). While working in the industry, Servify faces competition from the likes of Cashify, Onsitego and OneAssist.
Six months back, Servify acquired Noida-based startup 247around for an undisclosed amount. The acquisition was made to enter into small appliances and kitchen appliances categories.
The startup is currently looking to offer after-sales services to electric vehicles, electric bikes and electric cars. It claims to have an annual revenue rate (ARR) of over $130 Mn in the last fiscal year (FY21) and looks to turn profitable in the next three months.
Further, Servify aims to achieve $150 Mn ARR in the current financial year (2022-23). It further aims to grow 3x YoY and cross $500 Mn turnover along with 20% profits in the next three years.
