Smartphone repair company B2X steps up expansion with Indian deal

HCL Infosystems

21/10/2014 16:58

* Buys majority stake in India's TSS 
    * Begins new 15 mln euro funding round 
    * Manages repairs for leading global phone makers 
    * Plans retail and service one-stop stores 
 
    By Eric Auchard 
    FRANKFURT, Oct 21 (Reuters) - Smartphone users won't 
recognise the name B2X, but if your battery dies or your screen 
breaks, the odds are that the company will be working behind the 
scenes when you seek a repair. 
    For customer services software provider B2X Care Solutions, 
which already manages repairs for many of the world's biggest 
phone makers, announced on Tuesday that it is buying a majority 
stake in an Indian phone repair specialist while receiving new 
funding to boost its global expansion. 
    Analysts say that B2X is transforming the weeks-long process 
for fixing broken phones into one that takes a matter of days. 
    It does this by orchestrating a global network that connects 
phone makers to call centers, contract manufacturers, parts 
suppliers, delivery services, insurers, retailers and customers. 
    "B2X is doing a nice job of stitching together what are all 
the very disparate processes that go into the aftermarket for 
mobile phone repair," said Michael Dominy, research director of 
supply chain services for market research firm Gartner.  
    Munich-based B2X said it is taking majority control of The 
Service Solutions (TSS), an authorised provider of phone repairs 
for Apple  AAPL.O  iPhones in India and customer care services 
provider for a variety of phone makers globally. 
   Terms of the TSS deal were not disclosed. 
    Privately held B2X said it is also holding a 15 million euro 
($19 million) funding round, led by Berlin-based venture capital 
firm Earlybird, which backs European companies with global 
ambitions and has invested in more than 100 businesses. 
    
    RAPID GROWTH 
    Valuation terms were not disclosed, but a source familiar 
with the company's business said that B2X is doubling in size 
each year and that revenues are comfortably into the 
"triple-digit millions of dollars". In other words, sales of 
significantly more than $100 million.  
   Thomas Berlemann, chief executive of B2X Care Solutions, said 
his company's software and services are used to manage repairs 
and spare parts for phones both in and out of warranty, with an 
estimated combined market opportunity of $25 billion. 
   The German company said it plans to rebrand all TSS service 
stores under its own B2X brand. It also plans to use the 
existing TSS store concept to create retail and service outlets 
for multiple phone brands in a single shop. 
   The Indian business is planning rapid expansion of its 
network of repair shops across India and the Middle East next 
year, B2X said.  
   Besides Apple, TSS customers include Samsung Electronics 
 005930.KS , the world's largest phone maker, and Micromax 
 IPO-MINF.NS , D-Link  DLIL.NS  and HCL Infosystems  HCLI.NS .  
   B2X said that taking control of TSS also allows it to 
incorporate the Indian company's Internet-based cloud software 
for customer relationship management into its own software 
platform used for global supply chain management. 
   B2X itself manages customer services operations for phone 
repairs in more than 110 countries.  
   Existing customers include Motorola Mobility, which Lenovo 
 0992.HK , the world's No. 4 phone supplier, has agreed to 
acquire from Google  GOOGL.O . Other clients include TCL Alcatel 
 000100.SZ , among the world's top 10 smartphone makers, and 
Coolpad  2369.HK , China's third-largest smartphone company. 
(1 euro = 1.2717 US dollar) 
 
 
 (Editing by David Goodman) 
 ((eric.auchard@thomsonreuters.com; +49 69 7565 1235; Reuters 
Messaging: eric.auchard.thomsonreuters.com@reuters.net)) 
 
Keywords: TELECOMS B2X/