Apkudo, a Baltimore-based startup developing a platform to help manage, sell and test connected devices such as smartphones and laptops, today announced it has raised $37.5 million in a Series C funding round co-led by Closed Loop Partners’ Leadership Fund and Piper Sandler Merchant Banking with participation from MissionOG, Harbert Growth, Grotech Ventures, Lavrock Ventures and Point Field Partners. Sources tell businessroundups.org that the round, which brings Apkudo’s total amount raised to $75 million, values the company at about $300 million post-money.
Co-founder and CEO Josh Matthews says the proceeds will be used to grow Apkudo’s tech teams, build out the company’s go-to-market function and establish a physical presence outside of the US.
“Management has elected to raise now so that we can adequately respond to the intense market demand for the Apkudo platform,” said Matthews. “Our customers are also asking us to go beyond mobility and computing with them, while also collaborating in Europe, Asia and the Middle East.”
An embedded operating system engineer by training, Matthews started Apkudo in 2011 with Ben Leslie, whom he met while studying at the University of New South Wales in Australia. The two sought to build a service that companies could use to figure out the supply chain logistics for devices such as smartphones, tablets, laptops and wearables, with the goal of maximizing the value of resale, repair and reuse of those devices.
Martin Aares, head of asset management at Closed Loop Partners, highlighted the sustainability component of Apkudo’s mission, pointing out that less than 20% of electronics worldwide are collected, refurbished or recycled – translating to an estimated $50 billion in lost value each year. “There is so much value in the connected devices that are already on the market today,” he added. “Extending their lifespan and keeping these valuable materials in circulation, and keeping them out of landfills and the environment, is a critical part of accelerating the circular economy.”
Through Apkudo, companies such as mobile carriers can build device trade-in experiences for customers. Apkudo handles things like rating and pricing devices. But it can also perform tests, both in the lab and in the field.
According to Matthews, Apkudo uses AI for a range of tasks, such as predicting which stores, shipping hubs and distribution centers are most likely to have lost or stolen devices. During inspections, Apkudo’s algorithms try to differentiate between blemishes, scratches, chips, and cracks to assess the overall condition of a device.
“Apkudo is how all players in the connected device supply chain can now get real-time answers to questions about device inventory, quality and pricing – not just within their own organization but across their global partner network,” said Matthews. “Instead of raising huge amounts of venture capital and then hoping the product will fit the market, the Apkudo platform efficiently built capital by solving for the needs of the most sophisticated buyers.”
Apkudo’s customers include big names like FedEx, T-Mobile and Asurion, and Matthews says the company’s customer base has grown 30% from last February. He did not disclose revenue figures, but did let slip that Apkudo’s 180-employee annual recurring revenue grew about 141% year over year.
Undoubtedly, business is being supported by the growing demand, in general, for supply chain management solutions. Global sales of supply chain management software are expected to increase from $14.3 billion in 2019 to $24.5 billion in 2025, according to to Markets and Markets. That’s despite VC funding from supply chain startups shows signs of decay.
