Fairphone raises €2.5M with crowdfunding: Can Amsterdam-based sustainable startup change future of smartphone industry?

Fairphone raises €2.5M with crowdfunding: Can Amsterdam-based sustainable startup change future of smartphone industry?

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When it comes to a world’s ethical smartphone, it has to go through a fair production process that involves fair raw materials, production values, durability, waste prevention and of course, a full transparency as well. And that’s what the Dutch-startup Fairphone is all about!

Raised 2.5 million euros

In a recent development, Fairphone has raised around €2.5 million in a crowdfunding campaign through Oneplanetcrowd investment platform. Around 1800 investors gave a convertible loan to the company, where they can convert the loan into shares after a specific time period.

With this fund, the company is planning to launch a new phone, expand its foothold in the Southern Europe and the Scandinavian countries as well.

Fairphone is all about fairness!

Founded in 2010, the Amsterdam-based Fairphone, makes sure that the raw materials in the smartphone should not come from conflict areas. Since the phone is assembled in China, the company also ensures that the workers receive fair wages too.

According to the company, they source the needed minerals from Congo, mostly from mines outside conflict zones. Having said that, not all the materials needed for mobile phones are traded fairly. The company also adds the fair conditions are difficult to guarantee with electronic devices than with the food.

Sustainable philosophy!

Amidst these unfair practices, the company is aiming to make a positive impact across the value chain in mining, design, manufacturing and life cycle while expanding the market for products that put ethical values first.

In fact, the company relies on a long shelf life of the phone to reduce the wastage of resources. On top of that, for each and every phone sold, three euros directly goes to the service organization that involves in the recycling of electronic waste in developing countries.

Convertible loans!

After attracting €6.5 million from impact investors in 2017, this crowdfunding campaign is specially designed for the investment of smaller amounts starting at 250 euro that can be converted into shares via a convertible loan.

With this initiative, the company hopes to kick off the better environmental and social standards in mobile phone manufacturing. Moreover, the company also ensures the smartphone is not thrown in the garbage after a few months of usage.

Fairphone aims to bring an eco-friendly change in smartphone production

Amidst the increasingly large smartphone manufacturers, the Dutch Startup has been developing some well-defined concept in an attempt to develop the devices more sustainable and eco-friendly.

Having said that, the amount of devices Fairphone manufactures is not massive! In this case, can the Fairphone radically change the way things shapes up during controversial production process through market pressure? Do let us know your opinion in the comment section below!

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