Ooodles, a UK-based startup offering SMEs a go-to, one-stop-shop for simple, affordable and flexible tech rentals, announced it has raised €11 million, led by Paris-based asset manager, Smart Lenders Asset Management (SLAM).
Founded in 2021 by industry veteran Leonardo Poggiali, Ooodles is a Device-as-a-Service startup giving the underserved SME market access to high-end laptops, phones, and other business-critical IT tech on a flexible and sustainable monthly basis.
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of SMEs having to spend vast sums paying upfront for tech that depreciates the second it’s turned on, Ooodles flips the outdated buy-sell model on its head. 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 Ooodles help SMEs free up crucial capital for other core business investments, but it reduces the costs associated with obsolete IT. It gives leaders the flexibility to increase and decrease their tech on-demand. It allows teams to stay at the forefront of innovation and security, and it removes the burden of tracking and accounting for devices. All via a fully-digital, end-to-end platform that covers everything from credit approvals to inventory management and upgrades.
Most significantly, however, is that Ooodles directly feeds into the circular economy. Devices stay in a virtuous reuse-recycle loop that takes Ooodles far beyond the limitations of second-hand platforms in a way that not only benefits the ESG ratings of its customers, but directly benefits the planet.
In particular, Ooodles’ approach aligns with the UN’s Circular Vision for Electronics – a set of guidelines and recommendations designed to address the rising problem of e-waste globally. 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.
Leonardo Poggiali, CEO of Ooodles, 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. By choosing the Ooodles solution, customers also don’t have to worry about the ESG footprint of their IT devices because our platform guarantees the reusability of the devices all the way to a repair and full recycle path when required.”
The scaling of players like BackMarket and Raylo in the UK has accelerated the trend for second-hand mobile phones, and consumer rentals, yet a dedicated service for SMEs has been severely lacking. This is despite the fact that in the UK alone, 5.5 million SMEs are in need of laptops, mobiles, monitors and other tech devices. The market serving this need is replete with either small IT service companies that lack scalability, or big service providers that aren’t flexible and accessible enough for SMEs.
Ooodles has been built to plug this gap; to set the benchmark for SME tech rentals in the UK, Europe and beyond. And it’s a mission being driven by Poggiali’s experience at the coalface of this trend and the ecommerce market.
Erich Bonnet, CEO of Smart Lenders, commented: “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.”
The funding will be used to further expand Ooodles’ circular offering across the UK ahead of plans to launch internationally. The company is also aiming to be carbon-neutral by 2025.
