ReCellular Announces $15M Capital Investment From IGC

Investor Growth Capital (IGC) will be investing $15 million in a Series A Preferred Stock financing of ReCellular (News - Alert). This investment will enable ReCellular, an electronics-sustainability firm, to expand operations and accelerate rapid revenue growth.

 

The company provides solutions for the collection, reuse and recycling of used personal electronics that generate financial return for its partners, quality products for its customers and funding for charity organizations.

 

According to the CEO of ReCellular, Chuck Newman, “This investment marks a milestone in ReCellular’s history. It marks our transition from a successful start-up in the emerging field of cell phone recycling into the undisputed global leader in electronics sustainability. Our goal was to develop a profitable company that was socially and environmentally responsible. Through the dedication of a talented team of people, ReCellular has exceeded all expectations. With IGC’s support and investment, we will dramatically expand the company and set the standard for success in electronics-sustainability and clean-tech operations.”

 

ReCellular has been experiencing tremendous growth since it capitalized on two convergent trends: consumer’s growing awareness of environmental issues, and the increasing sales of new wireless handsets. Due to this, the revenues of ReCellular have shot up by an average of 25% percent for the past eight years. In 2008, the company is all set to collect more than six million phones and recycle more than 1.5 million pounds of material. Recycling of six million phones will reduce carbon emissions by the equivalent of 8,400 cars in a year. This estimate has been projected by the Environmental Protection Agency.

 

Albert Kim, vice president of IGC, stated, “We see tremendous growth potential in ReCellular. They have revolutionized the electronics-sustainability industry by providing a convenient solution for consumers to recycle their used handsets, while at the same time extracting enough value from these phones to build a successful business. We have investigated many clean-tech companies, including many in the cell-phone recycling arena, and we felt that ReCellular was clearly the world’s most promising cell phone reuse and recycling firm.”

 

In connection with IGC’s investment with ReCellular, Noah Walley and Albert Kim will join the board of directors at ReCellular. IGC will also help expand ReCellular’s business by leveraging their collective experience in building and developing world-class companies.