Behind the Term Sheet: How Reuse is giving electronics a second life in Spanish-speaking Latin America
Leading the Charge for Sustainable Electronics: Seaya Cathay Latam Announces Investment in Reuse
With operations spanning Mexico, Chile, and Peru, Reuse offers consumers and businesses alike the opportunity to access high-quality refurbished electronics, contributing to a more sustainable future. Led by Seaya Cathay Latam, alongside Dalus, Ignia, and Silence VC, our recent $4.5 million seed round signals a strong vote of confidence in Reuse’s mission and vision. This infusion of capital will fuel Reuse’s expansion efforts, enabling the company to scale its operations, enhance its technological infrastructure, and broaden its reach across Latin America. Following Cathay Innovation’s investment in Reebelo in 2022 — a similar company operating in APAC and the US — we are now doubling down on the sector.
Seizing Opportunities Amidst Regulatory Winds: The Transformative Potential of Refurbished Electronics in Latin America
The Latin American market for used and refurbished electronics is poised for remarkable growth, driven by evolving regulations and increasing consumer demand for sustainable solutions. With governments pushing for better customer protection and electronic waste management, the need to resell products is on the rise. Our projections indicate that the Total Addressable Market (TAM) in Latin America could reach $15 billion by 2030, with initiatives like the EPR Law in Chile, Colombia, and Peru driving conscious approaches from brands towards electronic waste. The second-hand smartphone market in Latin America experienced a staggering 29% growth in 2021, outpacing global counterparts. This surge is attributed to increased consumer awareness, expanding participation from e-commerce sellers, and the popularity of trade-in programs. Companies like Reuse play a vital role in these regulations by centralizing and refurbishing products, subsequently re-entering them into the market through e-commerce platforms, effectively extending their effective service life and contributing to both environmental sustainability and market growth.
Meet Reuse: The Perfect Partner for Top Brands and Retailers Reverse Logistics’ Needs
According to a report produced by the United Nations Industrial Development Corporation (UNIDO’s) only 3% of Latam’s e-waste is properly collected through formal channels and treated in an environmentally sound manner.
Reuse tackles this issue with a solution entailing 4 parts:
- Refurbishing Products: process and repair both open-box and used electronics
- Circular Economy E-commerce: own E-commerce in each country that allows them to capture higher recovery values
- Resale-as-a-Service: A platform that allows retailers to have their reverse logistics on electronic products
- Trade-in Programs: Offering Reuse customers the possibility to leave equipment as part payment, offered both as a proprietary program and as a service for retailers
Within this business, the conventional approach often involves importing used electronics and refurbishing them; however, what sets the true leaders apart is their ability to forge strategic alliances with esteemed brands and retailers. It’s these partnerships that not only elevate Reuse above its competitors but also help these companies manage their complex reverse logistics’ processes. Bolstered by a compelling value proposition — highlighting how brands stand to gain more by partnering with Reuse compared to traditional avenues like auctions and outlets — the company has rapidly solidified its position. With over 20 partnerships inked with major players across Latin America, including industry titans such as Falabella, Coppel, Samsung Chile, and more, Reuse is primed to reshape the landscape of sustainable commerce in the region.
Parting Thoughts: A Mission-Aligned Investment
The ethos of Reuse deeply resonates with our values at Seaya Cathay Latam. We are committed to supporting entrepreneurs who are driving innovation while building businesses that are resilient, responsible, and sustainable.
We are confident that Reuse will not only become the leading marketplace for refurbished electronics in the Latin American region but will also catalyze a broader transition toward a more sustainable economy. With our global platform and experience in the sector, we can’t wait to collaborate with Reuse’s team to realize this vision. Together, we aim to propel Latin America’s circular economy for consumer electronics forward, prolonging the lifespan of technology while mitigating its environmental footprint.
Written by Federico Gómez Romero, Seaya Cathay Latam
