FDC has remained a steadfast and flexible investment partner, providing the financial support and stability as our business and operating model has moved forwards rapidly.
– Steve Oliver, Chief Executive at MusicMagpie
Investee biography:
Operating a circular economy model, musicMagpie buys used consumer tech products such as mobile phones, games consoles and tablets and physical media items (CDs, DVDs, games and books) from consumers, refurbishes them and sells them back for the next person to use. It refurbishes over 95% of the consumer tech products it buys, giving over 400,000 consumer products per year, a second life.
Helping consumers stay connected, work and be entertained from home, while enabling them to easily raise fast cash from unwanted items has been especially important during the coronavirus pandemic, creating a surge in people using musicMagpie.
Deal Summary
- Investment amount: Multi-million
- Transaction: Growth Capital
- Location: North West
- Sector: Consumer
Portfolio Director
FDC Exit:
FDC backed musicMagpie in March 2018 with a multi-million-pound investment to support their working capital requirements and expansion in the US market, which has proved highly successful and the business has grown by 25% in its turnover whilst expanding its EBITDA significantly during this time.
Steve Oliver, Chief Executive said:
“Since our inception in 2007, we’ve always invested heavily in scaling up the business and developing our technology that can be applied globally. The initial investment from FDC in 2018 allowed us to capitalise on growing market opportunities such as the demand for refurbished consumer tech products, whilst acting as a catalyst for our growth overseas.
“Over the last two and a half years, FDC has remained a steadfast and flexible investment partner, providing the financial support and stability as our business and operating model has moved forwards rapidly.”
musicMagpie recently completed a refinancing deal, enabling FDC to make successful exit from the investment relationship.
Clive Broadhurst, Portfolio Director, Frontier Development Capital, added:
“When an investee business reaches the scale that musicMagpie has, it underlines precisely how growth capital support like the funding that FDC provides, can scale up a business very quickly.
We’re delighted to have been able to support musicMagpie up to the point of our recent exit from the investment. We look forward to following their journey, as they continue on this fantastic trajectory of growth into 2021 and beyond”.
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