Electronics after-sales service firm Servify raises $11.4 mn in Series C

Electronics after-sales service firm Servify raises $11.4 mn in Series C
9 Jun, 2020

Mumbai-based Service Lee Technologies, which runs after-sales services platform for electronic devices Servify, has raised $11.4 million (Rs 85.87 crore at current exchange rates) in a Series C round led by venture capital firm Iron Pillar.

Homegrown venture capital firm Blume Ventures and Luxembourg based private wealth management company Tetrao SPF also participated in the round. While Iron Pillar and Blume Ventures are returning, Tetrao SPF is a new investor in the company.

Of the total, Iron Pillar, through its Iron Pillar top-up fund, invested $10.9 million (Rs 82.5 crore), Tetrao contributed $300,000 (Rs 2.25 crore) and Blume Ventures via its Blume Ventures opportunities fund IIA pitched in with $150,000 (Rs 1.12 crore).

In all, the company issued 27.23 lakh Series C preference shares to the three investors at Rs 315.35 per share, regulatory filings showed.

Founded in 2015 by Sreevathsa Prabhakar, Servify provides device-as-a-service to purchasers of electronic devices including repairing and warranty. It has tied-up with over 45 brands such as Samsung, Apple, Nokia, Bose, OnePlus, OPPO, Panasonic, Redington, Reliance Jio, Reliance Retail, Xiaomi and Croma. It claims to have operations in eight countries and has hired 350 employees

Servify’s pre-money valuation stood at $53 million (Rs 400 crore) as on April 20, 2020, according to an independent valuation report. The valuer has accounted for a 2% risk premium for projected revenues for the financial year 2020-21 and FY21 considering the impact of the Covid-19 pandemic on its operations. At the higher range of projected revenues, Servify’s pre-money valuation stands at nearly $75 million.

The latest funding round comes after a gap of nearly two years. Servify, in its last reported round of August 2018, raised $15 million in a Series B round led by Iron Pillar with Blume Ventures and Beenext.

In January last year, Servify acquired its Bengaluru-based competitor iService in a cash and stock deal.

Iron Pillar top-up fund is a $45 million venture capital fund by Iron Pillar Capital Management, which funds early-stage startups focused on ed-tech space. Last week, Houston-based real estate firm Nitya Capital infused an undisclosed amount in Iron Pillar Holdings. The fund has so far invested in ed-tech startup Testbook and e-retailer FreshToHome.

For Blume Ventures, this is the first investment announced since the close of its Blume Ventures opportunities fund IIA at $41 million in February, which aimed to invest in the follow-on rounds of its portfolio companies from funds I, II and IA. 

Blume Ventures’ portfolio companies include Unacademy, Grey Orange, Servify, Turtlemint, Dunzo, Purplle, IntrCity (Railyatri), Milkbasket, Tricog and Cashify. In the same month, Blume Ventures closed its third fund, dubbed Blume Ventures Fund III, at $102 million. Post the close of opportunity fund, its capital under management to about $262 million.