UK-based Ooodles offers SMEs a go-to, one-stop-shop for simple, affordable and flexible tech rentals. In a recent development, the startup has raised $12 million in funding. The round was led by Paris-based asset manager, Smart Lenders Asset Management (SLAM).
The funding will be used to further expand the company’s circular offering across the UK ahead of plans to launch internationally. It also aims to be carbon-neutral by 2025.
What challenge does it tackle?
According to the UN, approximately 50 million tonnes of e-waste are produced each year which is equivalent in weight to all commercial aircrafts ever built. Yet only 20% is formally recycled and reused. If nothing is done, the amount of waste will more than double by 2050, to 120 million tonnes annually.
In the Circular Vision for Electronics, the UN has a set of guidelines and recommendations that aim at combating the rising problem of e-waste. Aligning with this aim, the Device-as-a-Service startup gives the underserved SME market access to high-end laptops, phones, and other business-critical IT tech on a flexible and sustainable monthly basis.
While there are services like BackMarket and Raylo in the UK that have set a trend in the used mobile phone market and consumer rentals, there is no service that is dedicated for SMEs.
In the UK, it is reported that 5.5 million SMEs are in need of laptops, mobiles, monitors and other tech devices. The market serving this need has either small IT service companies that lack scalability or big service providers that aren’t flexible and accessible enough for SMEs.
Industry veteran Leonardo Poggiali founded Ooodles in 2021. Having spent more than two decades across corporates and startups, Poggiali has witnessed the scale of the problem during his time at HP, Sony and Grover. The company fills this gap to set the benchmark for SME tech rentals in the UK, Europe and beyond.
Flexible tech rental service
Instead of SMEs having to spend vast sums paying upfront for tech that depreciates the second it’s turned on, Ooodles flips the outdated buy-sell model. It offers a fully customisable Pay-As-You-Go subscription model in which SMEs can immediately access the tech they need, get rid of what they don’t, and upgrade instantly online.
Not only does it help SMEs free up crucial capital for other core business investments, but also reduces the costs associated with obsolete IT. The company also allows teams to stay at the forefront of innovation and security, and removes the burden of tracking and accounting for devices. All this is done via a fully-digital, end-to-end platform that covers everything from credit approvals to inventory management and upgrades.
Devices stay in a reuse-recycle loop that takes Ooodles far beyond the limitations of second-hand platforms. This benefits the ESG ratings of its customers and the planet.
It offers Ooodles+, which goes the extra mile when businesses need it the most. It costs an additional £3 per month per device and lets users change the contract period, upgrade without additional charges, insurance coverage and a faster loan approval.
Customer base
Ooodles’ customer base is on track to triple by the end of 2023. HALO Europe, a fast-growing security and body cam tech SME, has seen its IT overheads more than halve in the 12 months since subscribing to Ooodles. Halo chose this partner because of its flexibility, high-end service, and circular guarantee.
Ooodles founder Leonardo Poggiali said: “The business model in the IT hardware industry has had little-to-no significant innovation in the last 20 years, other than the growth of eCommerce. The segment is stuck on a buy-sell model, while customer demand is moving to a subscription business model. This is where Ooodles comes in, offering a flexible rental platform that allows SMEs and professionals to regularly upgrade to the latest devices, saving time and money.”
Erich Bonnet, CEO of Smart Lenders said: “Through The Lending Smart Fund 1, SLAM is proud to participate in the early financing of this new Hardware-As-A-Service industry via Ooodles, one of the most promising companies in this field.”
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