Mobile device

Everphone, a B2B mobile device rental and service provider, raises $200 million – Tech.eu

Berlin-based telephony-as-a-service provider everphone has raised $200 million in a new funding round. The startup offers enterprise customers a one-stop solution for purchasing, managing, and integrating smartphones and tablets issued to employees. The funding will be used to further develop sales and marketing efforts in Europe, while the company also seeks to bring its offering to the US market. To date, the company has raised just under €220 million.

Founded in 2016 by former CHECK24 board member Jan Dzulko, everphone essentially frees IT from managing the device fleet, as all transactions happen directly between employees and the startup. This independent management ensures that all issued devices comply with data protection guidelines and security requirements, and that there is never an overstock of devices that simply gather dust.

Dzulko also points to the circular economy as a benefit of everphone’s offering, as each smartphone is retired after its first two-year life cycle, refurbished, and then reissued. In 2020 alone, around the world, some 226 million smartphones received a second life, avoiding the introduction of more than 13 million tons of CO2 into the atmosphere, a number equivalent to the emissions of approximately 8, 7 million thermal cars.

“The demand for our model is not only constant, but is even increasing rapidly. The more companies understand that they should only use the number of devices they actually need, the more we save the environment and valuable resources,” commented Dzulko. “My goal has always been for the circular economy to be widely accepted and we are doing our part. In short, I believe in using rather than owning.

Everphone’s $200 million seed round was led by Cadence Growth Capital (CGC), followed by existing investors Deutsche Telekom, AlleyCorp and Signals Venture Capital. However, the share of equity financing versus debt is unclear, as the company notes that Deutsche Bank and Phoenix Insurance Company provided loans under a warehouse financing facility.

“everphone is leading the way into the future. In order to be able to provide the young Berlin-based company with sufficient capital for rapid growth, while responding to the very agile phone-as-a-service model, we have jointly developed a tailor-made hybrid financing solution,” said Deutsche Robin Cresswell of Banks, Head of DACH Direct Lending.