Tech resale site Music Magpie today said it has secured £20m in fresh funding, just days after confirming plans for an initial public offering in London.
The online retailer, which allows consumers to exchange old devices such as phones and game consoles to cash, has inked the deal with Silicon Valley Bank’s (SVB) UK branch.
The agreement includes £10m through a committed revolving credit facility and £10m via a so-called accordion feature.
California-based SVB banks for and lends to some of the world’s most successful tech companies, including Twitter and Cisco.
It comes just days after Music Magpie confirmed it will float on London’s Aim market next week with a target valuation of £208m.
The listing is set to raise £15m for the Stockport-based company, while shareholders will share a £95m windfall.
It is the latest tech IPO expected in London this year after Darktrace confirmed plans to list early next month. Deliveroo’s eagerly-awaited stock market debut flopped last month, raising questions over investor appetite for tech floats in London.
Music Magpie, which was founded in 2007 with an initial focus on DVDs and CDs, has shifted to a model of buying, refurbishing and reselling unwanted gadgets. It is now the UK’s largest phone recycler.
The company is understood to have benefited from the rising cost of tech products, an increased awareness of environmental issues among consumers.
It is also thought to have cashed in on improved trading during the pandemic as locked-down consumers looked to clear out unwanted items and raise cash.
The firm said it would use the fresh funding to invest in its platform, as well as in sales and marketing in both the UK and the US.
Chief executive and co-founder Steve Oliver said “A long-standing relationship, sector insight and speed of execution made SVB the perfect choice for Music Magpie.
“We will use the additional funding to build out our international market presence and advance our digital proposition. We’ll also focus on building our talent pool and investing in our platform and refurbishing capabilities.”