In a landmark move for Africa’s burgeoning tech ecosystem, Kenyan startup Badili has secured a US$400,000 debt facility from French development finance institution Proparco. The financing, arranged through the Bridge by Digital Africa initiative, marks a significant milestone in Badili’s expansion plans across the continent. Founded in 2021 by Rishabh Lawania and Keshu Dubey, Badili has quickly positioned itself as a leader in Africa’s re-commerce sector by refurbishing and reselling pre-owned smartphones. This new injection of capital is set to help the startup scale its operations, broaden its market reach, and contribute to sustainable development by reducing electronic waste—all while making affordable smartphones accessible to millions of Africans.

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A New Chapter in Africa’s Digital Transformation

Badili’s recent funding round comes at a time when demand for affordable mobile devices is surging across Africa. With high new smartphone prices often acting as a barrier to digital access, refurbished devices provide a cost-effective solution that empowers individuals and small businesses alike. As digital connectivity becomes increasingly vital for accessing essential services such as online education, mobile banking, and telemedicine, initiatives like Badili’s are pivotal in bridging the digital divide.

Rishabh Lawania, founder and CEO of Badili, remarked on the significance of the investment:

“Getting validation and trust from Proparco is a great boost to the morale of the team that is building a sustainable company that enables Africans to own smartphones for a fraction of the cost of a new one.”
He added, “As we enter profitability and expand into other regions across Africa, it’s a pleasure to welcome one of the most progressive and supportive DFIs in the world as part of Badili’s billion-dollar journey.”

The infusion of US$400,000 is expected to accelerate Badili’s growth, enabling the startup to refine its refurbishment process, improve its distribution network, and enhance customer support services. With a proven business model already validated by previous funding rounds—having raised US$2.1 million in pre-seed funding in 2022 and seed capital from E3 Capital in 2023—Badili is well-positioned to leverage this new debt facility as it scales operations.

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The Role of Refurbishment in Enhancing Digital Access

Africa’s digital landscape is rapidly evolving, yet the region still faces challenges when it comes to widespread smartphone penetration. New devices often come with a premium price tag that many consumers cannot afford. Refurbished smartphones, on the other hand, provide a viable alternative that lowers the entry barrier to digital technology.

By extending the lifecycle of smartphones through refurbishment, Badili is not only providing affordable devices but also playing a crucial role in promoting digital inclusion. Affordable connectivity enables individuals to access vital digital services—ranging from financial inclusion through mobile banking to e-learning platforms—that are transforming economies and improving livelihoods.

The business model adopted by Badili is particularly relevant in the African context, where the majority of internet users access the digital world primarily via smartphones. In many regions, these devices are the gateway to information, commerce, and social interaction. As such, initiatives that help reduce the cost of mobile devices are critical for accelerating the continent’s digital transformation.

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Sustainability and the Circular Economy

Beyond digital inclusion, Badili’s operations have significant environmental implications. Electronic waste (e-waste) is a growing concern globally, and Africa is no exception. The rapid turnover of electronic devices, coupled with inadequate recycling infrastructure, has contributed to mounting e-waste challenges on the continent.

By refurbishing smartphones and reintroducing them into the market, Badili helps extend the useful life of these devices and mitigates the environmental impact associated with e-waste. This sustainable approach supports the principles of a circular economy—where resources are reused and recycled rather than discarded—and contributes to broader environmental goals.

Fabrice Perez, head of venture capital at Proparco, highlighted the transformative potential of Badili’s business model:

“Badili’s initiative to refurbish smartphones locally in Kenya is a game-changer. This project not only promotes economic resilience but also underscores the importance of sustainability in today’s digital economy.”

The refurbishment process reduces the demand for new devices, which in turn lowers the energy consumption and raw materials required for manufacturing. This model of sustainable consumption is gaining traction globally, as consumers and investors alike become more aware of the need to adopt environmentally friendly practices.

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Proparco and the Bridge by Digital Africa Initiative

The financial backing from Proparco, a leading French development finance institution, is a vote of confidence in Badili’s business model and the potential of the African tech market. Proparco’s involvement is part of its broader mission to foster sustainable development and digital inclusion across emerging markets. Through the Bridge by Digital Africa initiative, Proparco aims to support ventures that leverage technology to drive social and economic progress.

Proparco’s strategic investment in Badili underscores the growing recognition among global development finance institutions of Africa’s untapped potential. With investments targeting sustainable infrastructure, renewable energy, and digital transformation, DFIs are increasingly viewing African markets as fertile ground for innovation and growth. The US$400,000 debt facility provided to Badili not only reflects confidence in the startup’s operational capabilities but also serves as a catalyst for scaling similar business models across the continent.

The debt facility is structured to offer flexible repayment terms, enabling Badili to reinvest its earnings into further expansion and technological enhancements. Debt financing, as opposed to equity dilution, allows the company to maintain control over its operations while benefiting from the capital required to accelerate growth.

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Market Dynamics: The Rise of Refurbished Electronics in Africa

The refurbished smartphone market is gaining momentum globally, and Africa is emerging as a key growth region. Several factors contribute to this trend:

• Affordability: In many African countries, the high cost of brand-new smartphones limits access to digital technology. Refurbished devices offer a more affordable alternative without compromising on quality.
• Rapid Technological Change: With the fast pace of technological advancements, many consumers opt for refurbished models that still offer up-to-date features at a lower cost.
• Environmental Concerns: As awareness of e-waste issues grows, both consumers and policymakers are increasingly supportive of sustainable consumption practices. Refurbished electronics play a vital role in reducing waste and conserving resources.
• Economic Resilience: In times of economic uncertainty, consumers are more likely to choose cost-effective alternatives. Refurbished smartphones provide a practical solution for individuals and small businesses operating on tight budgets.

Recent market reports suggest that the global refurbished smartphone market is expected to grow at a compound annual growth rate (CAGR) of around 12–15 percent over the next five years. Africa, with its expanding middle class and increasing smartphone penetration, represents a significant portion of this growth trajectory. By tapping into this opportunity, startups like Badili are well-positioned to capture market share while driving broader economic benefits.

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The Broader Impact on the African Tech Ecosystem

Badili’s success is emblematic of a broader shift within Africa’s tech ecosystem. Historically, the continent has faced challenges such as limited access to capital, infrastructural constraints, and a scarcity of skilled labor. However, the rise of innovative startups in sectors ranging from fintech and e-commerce to health tech and digital education has begun to transform the narrative.

In Kenya, a country known for pioneering mobile money solutions like M-Pesa, the tech ecosystem has grown exponentially over the past decade. The success of such innovations has created an environment that is conducive to further digital breakthroughs. Badili’s focus on refurbishing smartphones aligns perfectly with this momentum by addressing both affordability and sustainability—a dual challenge that is critical for continued growth.

Moreover, the investment from Proparco and similar DFIs signals an increasing willingness among international investors to back African startups. This influx of capital is not only helping companies scale but is also contributing to the development of local expertise and job creation. By fostering a culture of entrepreneurship and innovation, Africa is gradually overcoming historical challenges and emerging as a global tech hub.

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Empowering Local Economies and Enhancing Skills

The operational model of Badili goes beyond simply refurbishing and reselling smartphones. The startup is also committed to building local capacity and creating employment opportunities in the tech repair and refurbishment sector. By training technicians and developing standardized refurbishment processes, Badili is helping to create a skilled workforce that can sustain the industry over the long term.

Local communities stand to benefit from these initiatives in several ways:

• Job Creation: As the business scales, the need for skilled labor in repair, logistics, and customer service will increase, leading to new job opportunities.
• Skill Development: Training programs and workshops provided by the startup can help individuals develop valuable technical skills, which are transferable across various sectors in the tech industry.
• Economic Resilience: By keeping value chains local, Badili helps to retain more economic benefits within the community, thus contributing to broader economic development.

These efforts not only strengthen the local economy but also serve as a model for sustainable business practices in emerging markets. As more investors and policymakers recognize the value of such initiatives, there is potential for replicating this model across other sectors and regions within Africa.

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Overcoming Challenges and Navigating the Competitive Landscape

While the opportunities for growth in the refurbished smartphone market are significant, startups like Badili must navigate a competitive and rapidly evolving landscape. Several challenges persist:

• Supply Chain Management: Securing a steady supply of used smartphones that can be refurbished to high-quality standards is essential. Disruptions in the supply chain—whether due to global market fluctuations or local logistical issues—can affect the business.
• Consumer Perception: Despite the clear benefits of refurbished devices, some consumers may still harbor concerns regarding quality and longevity. Building trust through rigorous quality control and transparent warranty policies is crucial.
• Regulatory Environment: As the refurbished electronics market grows, regulatory frameworks will need to evolve to ensure consumer protection and environmental sustainability. Companies must remain agile and compliant as new regulations are introduced.

Badili’s management team is well aware of these challenges and is actively investing in technologies and processes that enhance operational efficiency and product quality. By leveraging data analytics, advanced testing equipment, and a robust distribution network, the startup is working to ensure that every device meets stringent quality standards. This commitment to excellence not only helps in building consumer trust but also sets the stage for long-term scalability.

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A Vision for a Billion-Dollar Journey

Badili’s trajectory is a testament to the transformative potential of innovation in Africa. The US$400,000 investment from Proparco is more than just a financial boost—it is a validation of the startup’s vision to create a sustainable, inclusive, and scalable business model. As the company charts its course toward profitability and regional expansion, it aims to tap into the vast, untapped potential of the African market.

The long-term vision articulated by the founders is ambitious. By scaling operations and expanding beyond Kenya’s borders, Badili intends to establish a pan-African network of refurbishment hubs. These hubs would not only serve as centers for smartphone refurbishment but also as training grounds for local talent and innovation labs that drive further advancements in sustainable technology.

The company’s approach exemplifies the intersection of social impact and commercial viability—a balance that is increasingly sought after by investors worldwide. As global trends lean toward sustainable and inclusive business models, Badili is uniquely positioned to lead the way in Africa’s tech sector.

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Looking Ahead: The Future of Refurbished Technology in Africa

The refurbished smartphone market is poised for substantial growth, and Africa stands at the forefront of this transformation. With an expanding consumer base, a rising middle class, and a growing awareness of environmental sustainability, the conditions are ripe for innovation. Companies like Badili are not only meeting current demand but are also setting the stage for future developments that could redefine digital access on the continent.

As more investors recognize the potential of sustainable tech ventures, there is likely to be increased funding and support for initiatives that promote both economic growth and environmental stewardship. The success of Badili could pave the way for similar startups across Africa, creating a ripple effect that strengthens the overall ecosystem and accelerates digital transformation.

In addition, the integration of emerging technologies—such as artificial intelligence and blockchain—into the refurbishment process could further enhance efficiency, transparency, and customer satisfaction. These technological advancements are expected to drive down costs and improve the quality of refurbished devices, making them even more attractive to a wider consumer base.

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Conclusion

Badili’s recent US$400,000 investment from Proparco represents a pivotal moment for the startup and the broader African tech ecosystem. By focusing on the refurbishment of smartphones, Badili is addressing critical issues of digital inclusion, affordability, and environmental sustainability—all of which are essential for the continent’s ongoing development.

With a strong foundation built on previous funding rounds and a clear vision for expansion, the company is well-equipped to overcome challenges and seize new opportunities in a competitive market. The strategic backing from Proparco and the Bridge by Digital Africa initiative not only provides the capital necessary for growth but also reinforces the importance of sustainable business practices in emerging markets.

As Africa continues its journey toward digital transformation, initiatives like Badili’s will play an increasingly central role in shaping the future of technology on the continent. By empowering individuals with affordable, high-quality smartphones, the startup is not only fostering economic resilience but also paving the way for a more connected, inclusive, and sustainable digital future.

In the coming years, the impact of such innovations is expected to extend well beyond the realm of consumer electronics—transforming education, healthcare, financial services, and countless other sectors that rely on digital connectivity. Badili’s journey is a clear example of how innovative business models can drive both profit and progress, setting the stage for a new era of sustainable growth and technological empowerment in Africa.

As the refurbished smartphone market expands and matures, Badili is well on its way to achieving its vision of a billion-dollar journey. With strategic investments, robust operational practices, and a commitment to social impact, the startup is not only reshaping the way Africans access technology but also creating a legacy of sustainability and innovation that will inspire future generations.

Ultimately, the success of Badili underscores a broader narrative: that in today’s rapidly evolving digital economy, innovation and sustainability are not mutually exclusive. Instead, they can work hand in hand to create solutions that are both economically viable and socially responsible—a win-win scenario for consumers, investors, and the environment alike.

With the backing of forward-thinking institutions like Proparco and the collective ambition of Africa’s entrepreneurs, the future of refurbished technology on the continent is brighter than ever. As Badili continues to scale its operations and expand its impact, it serves as a beacon for other startups looking to drive meaningful change in the digital age.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

6th March, 2025