EIB signs €17 million loan to iPhone refurbisher Swappie

• The loan agreement supports quality refurbishment of smartphones, extending their lifespan, reducing e-waste and enabling an increasing amount of customers to cut their emissions.
• The deal affirms the EIB’s support for circular economy and the European Green Deal.
• The financing is backed by an InvestEU guarantee for innovation investments advancing the green transition.

The European Investment Bank (EIB) and Swappie, Europe’s largest iPhone refurbisher, have signed a loan agreement to back the high quality refurbishment of iPhones, extending the lifespan of the devices and enabling consumers to reduce their carbon footprint in support of a circular economy.

The EIB will provide a five-year, €17 million loan to the innovative Finnish startup to support its investment in research and development and robotics aimed at making iPhone repairs quick and reliable. The deal will also allow Swappie to enhance its refurbishment and operational capabilities, while rolling out more products and expanding its international reach.

This agreement is backed by the InvestEU programme, which aims to trigger more than €372 billion in additional investment between 2021 and 2027. The InvestEU programme mobilises investment for EU policy priorities such as the green transition, competitiveness, innovation and sustainable infrastructure.

By refurbishing iPhones to the highest standards using category-leading proprietary technology, Swappie avoids environmental waste and enables customers to spend less on high quality devices. The carbon footprint of a refurbished smartphone is 80% lower than that of new devices, while keeping a mobile phone in use for another year cuts its lifetime carbon dioxide emissions by a third.

“Swappie is a good example of how we can reduce waste and extend the use of technical appliances, while at the same time making them more affordable,” said EIB Vice-President Thomas Östros. “We are pleased to help Swappie to empower customers to buy smart, pay less and reduce their carbon footprint. Swappie expands consumer access to electronics while having a positive impact on the planet. Its concept to reduce e-waste, reuse all functional spare parts and recycle generated waste is fully in line with the EIB’s commitment to support a circular economy and sustainable innovations.” 

Speaking about the partnership between EIB and Swappie, the company’s CFO Lauri Lipsanen said: “We are immensely grateful for the European Investment Bank’s support through this €17 million loan, which signifies a pivotal moment for Swappie as we continue to advance our mission of sustainable technology consumption. This funding will support our research and development efforts, allowing us to further refine our refurbishment processes and extend the lifespan of iPhones, thereby reducing e-waste and minimising the carbon footprint associated with new smartphones. It's another exciting step forward in our commitment to make quality refurbished electronics accessible and affordable, contributing to a greener planet and a more sustainable future.”

Background information     

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Agreement. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation and adaptation, and a healthier environment.

Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank's commitment to fostering inclusive growth and the convergence of living standards.

In 2023, the EIB Group pledged almost €1 billion in financing for new projects in Finland. The funding targeted the research and development expenditure of large companies, industrial investments, energy-efficient buildings, education infrastructure and supporting small companies. The financing accounts for 0.35% of the country’s gross domestic product, supporting investment worth nearly €4.4 billion. This is part of the nearly €8 billion of EIB Group financing provided in the country over the past five years.

InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union's policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Swappie

Swappie, Europe’s largest iPhone refurbisher, is the leading end-to-end online destination for buying and selling refurbished iPhones. Its mission is to give people a way to upgrade their phones that is high quality, affordable and environmentally friendly. Swappie currently operates across Europe, including in Finland, Sweden, Italy and Germany. The company grew in 2022 with sales of €208 million, and since raising its first funding in January, Swappie has become one of the most innovative and fast-growing companies in Europe, expanding its team to over 800 people and raising $171 million (€149 million) from investors to date.