mcare has raised a € 5 million funding round through Springvest

mcare, the largest repair and service company focusing on Apple devices in the Nordic countries, raised EUR 5 million in funding to expand its operations into multi-brand service and lifecycle business.

In ten years, mcare has grown into the largest Apple-branded repair service company in the Nordic countries, with exceptionally high customer satisfaction. mcare's business strategy has been significantly revised during recent years. Matti Uronen, CEO of mcare, appointed at the beginning of 2021 and holds extensive domain experience, is responsible for implementing the new strategy.

"Covid-19 significantly accelerated digitalization and the use and need for personal electronic equipment. At the same time, appreciation and understanding of the importance of extending the lifetime of devices is reaching the attention it deserves." CEO Uronen states. He has played a crucial role in formulating a renewed strategy emphasizing the circular economy.

mcare raised a significant round of financing with Springvest in October 2021. Springvest enables investment for anyone interested in unlisted growth companies, which mcare saw as a very suitable and strategically right way to raise growth funding from a broader range of owners interested in mcare's business and mission to extend the lifetime of devices. The five million funding round was fully subscribed in less than a day.

The raised funds will enable mcare to execute its renewed strategy in full. The strategy contains three focus areas:

1. Expanding the repair business

The goal is to grow the repair service business both geographically and with the support of new authorizations from the manufacturers. Last year, mcare expanded into Norway and won new authorizations in Finland and Sweden. These new authorizations include, for example, Huawei, HMD Nokia, Xiaomi, and OnePlus. With the new authorizations, Finland's growth targets were met as far as possible, increasing turnover by more than 50% per year, despite Covid-19. The service business is a stable, high-volume business with tight margins.

2. Sales and productization of innovative and lifetime-extending services

Device prices and one-time repair costs have constantly been increasing. Repairing a broken device is often expensive and slow. The new service model makes the repair time faster, and the business is based on recurring invoicing instead of a one-time fee. Launched in 2020, the SLA + (Service Level Agreement +) minimizes downtime for devices, typically without additional costs.

3. Promotion of reuse and recycling of used equipment

mcare's world-class service expertise and manufacturer authorizations enable devices to be refurbished and recycled more efficiently in an environmentally friendly way. The raised funding is to be used to develop and grow the 2nd hand buyback and reselling processes. Among the players in the field are, e.g., Swappie, Back Market, and As Good As New have shown the way to grow the business quickly, and mcare holds a unique opportunity to grow profitably in this business area.

More information:

Petri Kalliokoski 
Chairman of the Board
+358 40 526 7122
petri.kalliokoski@mcare.fi

Matti Uronen 
CEO 
+358 44 092 6962 
matti.uronen@mcare.fi