Kenyan re-commerce startup Badili has raised $2.1 million in pre-seed funding to provide affordable smartphones in Africa, a fast-growing smartphone market.
Although smartphones are essential in the era of the digital economy, many Africans struggle to afford a new unit due to low income. The Communications Authority of Kenya recently revealed that although smartphone penetration in Kenya has increased over the years, 55.1 percent of the market share belongs to feature phones.
Additionally, International Data Corporation (IDC) revealed that feature phone shipments across Africa had grown by 10.6 percent in Q2 of 2022, while those of smartphones fell by 7.9 percent.
Founder and CEO Rishabh Lawania said he came up with Badili following the arrest of one of his colleagues for purchasing a stolen phone. Lawania explained that Badili is the first trustworthy smartphone re-commerce company in Kenya.
As a re-commerce company, Badili sells pre-owned smartphones to customers so they will not have to go to the risky gray markets. Unlike the gray markets, which may obtain their products from questionable sources, Badili receives a portion of its supply from reputable OEMs and phone dealers.
The startup has signed partnerships with famous smartphone brands, including Samsung. Badili also buys used smartphones from individual sellers who need to prove ownership of the devices. According to Lawania, Badili can offer smartphones for half the price.
I am more excited about the fact that we are able to help a lot of consumers
Rishabh Lawania
“We are providing an alternative to people who don’t want to pay full price for a device, and I am more excited about the fact that we are able to help a lot of consumers buy their first smartphone,” Lawania said.
Renowned investors like Venture Catalysts and V&R Africa participated in this funding round, along with angel investors from several African countries and India. Badili plans to use the funds to expand in West Africa, hoping to cater to the increasing demand for inexpensive secondhand smartphones. Eventually, Badili aims to build a trusted electronic re-commerce marketplace on the whole continent.
