Europe’s leading distributor of refurbished mobile phones, Phoenix Cellular, secures a £10m funding facility for international expansion from Praetura Commercial Finance (Praetura).
Praetura Commercial Finance has provided £10m of funding to support Phoenix Cellular, Europe’s leading distributor of refurbished mobile phones, to target international growth.
North West-based Phoenix Cellular is responsible for refurbishing hundreds of thousands of handsets a year that are sold around the world, instead of being disposed in landfill sites. It is estimated the company has recovered over a million handsets to date.
The company has been praised for its significant contribution to the circular economy, as UK SMEs continue to consider how they can operate more sustainably.
Founded in 2016, Phoenix Cellular was started by two experienced entrepreneurs who’d previously grown and sold two businesses together. The company has now grown to over 85 staff with operations in the UK, the Netherlands and Hong Kong.
Whilst most of its sales are within the EU and UK, post-pandemic the business is looking to remodel its customer base, increase sales to more international markets and create a greater online presence for its refurbished handsets.
Phoenix Cellular’s current institutional lender lacked the flexibility to provide a facility to fuel growth, so the business turned to Praetura Commercial Finance for funding that would help them to reach their goals.
The Praetura Commercial Finance team spent time with the business to understand its sales cycle, logistical challenges, and distribution plans.
The new bespoke facility will help the company employ new staff and bolster their export plans.
Stuart Bates, commercial director at Praetura Commercial Finance, said: “Working with entrepreneurs like Marc and Paul is a real privilege for the Praetura team. We want to empower entrepreneurs through relationship-led lending that ensures the business’ needs are put first.
“Phoenix Cellular now has the flexibility in its finance facility to confidently pivot sales online and take advantage of its wide-ranging opportunities for growth across Europe. We look forward to working with their team in the coming years.”
Marc Walters, founder of Phoenix Cellular, said: “Really delighted to have this new facility in place with Praetura. Stuart and his team were excellent throughout, both in understanding the business, the changes afoot and creating the right facility to support the business growth in the years ahead.”
Phoenix Cellular has recently been awarded the Queen’s Award for Enterprise for its success in exporting.
Praetura Commercial Finance is part of the wider North-West based Praetura Group, a specialist equity and debt funding business aimed at providing an alternative to more rigid institutional lenders. Founded in 2011, the group posted record figures in 2021 and increased its total loan book to over £200m.
According to the recent Experian M&A Review, Praetura Commercial Finance was the North West’s leading debt provider in 2021.
Squire Patton Boggs provided legal advice to Praetura Commercial Finance.