Circular, a startup backed by Y Combinator, is a service that provides subscriptions to high-end electronics like iPhones, Samsung Galaxy devices, iPad Pros, and MacBook Pros for consumers in Singapore and Australia. Its mission is not only to help people access these devices at lower prices but also to extend their lifecycle and reduce electronic waste.
Recently, the company announced the successful closure of a seed round, securing $7.6 million in funding. This funding round was led by AirTree Ventures, with participation from YC Continuity Fund, Global Founders Capital, Partech Ventures, and January Capital. It also included contributions from prominent angel investors, including the founders of PropertyGuru, Funding Societies, Stashaway, Carousell, and Nutmeg.
Circular aims to capitalize on the popularity of the tech subscription model in Europe, exemplified by Grover, which raised $330 million in 2022. While this model is relatively new in the Asia-Pacific (APAC) region, Circular intends to leverage its position as a pioneer in the area. The startup reports substantial growth, having expanded threefold in the last 12 months, with plans to further triple its presence in Singapore and Australia over the next year. It is worth noting that another tech subscription service, ITEZ.SG, exists in Singapore but primarily serves businesses, not consumers.
CEO and co-founder Nick Ramsay emphasizes sustainability as one of Circular’s core principles. Many consumers frequently upgrade their devices, leaving their old ones unused or discarded, leading to significant environmental impacts. Circular’s business model minimizes waste by utilizing each device throughout its entire lifecycle. The company offers both refurbished and new devices and collaborates with industry-leading refurbishment specialists.
Circular, founded in Singapore in 2021, offers subscription services that include free damage protection, covering up to 90% of repair costs. Examples of products available on its platform include an Apple iPhone 15 Plus starting at SGD $74 a month, an Apple iPad Pro M2 12.9” for SGD $64 a month, and a Lenovo Thinkpad T14 (Gen 3) 14-inch laptop for SGD $94 a month. Subscribers can potentially save up to SGD $955 on an iPhone 15 Pro Max 256GB compared to purchasing it directly from Apple. The company has also expanded its catalog to include gaming products alongside its core offerings of phones, tablets, and laptops.
Ramsay’s previous role as the chief product and technology officer at MoneySmart Group led him to realize that existing financial products reinforced traditional ownership concepts and the linear economy. Circular’s affordable monthly subscriptions eliminate the need for credit cards, Buy Now, Pay Later (BNPL) services, or long-term contracts with telecommunications companies.
While subscription tech has gained traction in other markets, it faces challenges in Asia. Circular seeks to shift the perception of device ownership by educating consumers and dispelling myths about the cost-effectiveness of upfront purchases. The Singaporean government’s commitment to reducing e-waste also supports Circular’s mission.
Customers can choose from various subscription plans tailored to their needs, including short-term and long-term options. Circular’s model, which spreads the device cost over multiple subscribers, often proves more cost-effective than retailer payment plans with no interest.
Once customers are finished with their devices, they can return them to Circular for refurbishment, including data wiping, software and hardware testing, and sanitization. Circular aims to achieve approximately six subscription cycles per device before recycling it to reintroduce its materials into circulation.
With the newly secured funding, Circular plans to further develop its product-market fit in Singapore and expand its presence in Australia, driven by increasing demand for used devices and sustainable business models. Additionally, the company intends to focus on its B2B offering, Circular for Business, catering to startups and SMEs.
AirTree founder and partner Craig Blair expresses excitement about Circular’s potential, citing its alignment with consumer trends such as sustainability and changing ownership preferences. The startup’s diverse and skilled founding team across various domains positions it for success in reshaping the future of the circular economy.
