SeedBlink Blog

In the dynamic world of technology, it’s not uncommon to hear stories of innovative solutions emerging from personal experiences or frustrations. Every so often, an entrepreneur's negative encounter sows the seed for a business idea that not only addresses a pressing issue but also has the potential to revolutionize an industry.

Such is the case with Mihail Dimitrov, the CEO and Co-founder of Swipe, a thriving platform that has transformed the way people buy and sell used smartphones in Bulgaria and beyond. In this enlightening interview, Dimitrov shares the inspiration behind Swipe and outlines the company’s journey, its future aspirations, and the vital role it plays in promoting sustainability and reducing electronic waste.

What inspired the creation of Swipe?

The genesis of Swipe traces back to a personal experience I had two years ago. I’ve always appreciated the affordability and sustainability of second-hand goods, and smartphones were no exception. After buying a used phone from a seemingly trustworthy seller, I was shocked to discover the device was blacklisted just two months later. Unfortunately, the seller was unresponsive, leaving me with a loss and a non-functional phone.

This experience unveiled a glaring issue affecting thousands daily. People, enticed by the allure of premium used smartphones at competitive prices, were unwittingly exposing themselves to fraud and technical problems. It became apparent that a mediator was essential – a party that could offer warranty, technical inspections, and varied payment options to bridge the gap between buyer and seller, ensuring a secure and reliable transaction. Moreover, I realized that the untapped potential in the Central and Eastern European markets for second-hand devices and trade-in programs was significant, leading to the inception of Swipe two months later.

Were there additional incidents that underscored the need for a service like Swipe?

Absolutely. Besides my personal ordeal, the pervasive fraud incidents in the ‘Smartphones’ category on various classified platforms further accentuated the need for Swipe. Our platform addresses this issue head-on, offering users peace of mind with technically inspected devices backed by a two-year warranty and a 30-day money-back guarantee.

How did you assess the potential of the second-hand phone market in Bulgaria before introducing Swipe.bg?

Our comprehensive market research revealed that more than half of Bulgarians retained their old smartphones without any particular need. Coupled with the absence of official smartphone trade-in programs and over 1.5 million brand-new smartphones sold annually, we recognized a golden opportunity. If we could emulate the refurbished smartphone penetration rates seen in countries like France or the USA, we projected a potential market size of 300,000 devices per year in Bulgaria alone.

How have partnerships with Vitosha Ventures and other investors influenced Swipe.bg’s growth?

Our investors, or “SWIPERS” as we affectionately call them, have been instrumental in Swipe’s accelerated success. Their continual support and network have facilitated valuable collaborations with prominent electronic retailers, telcos, banking institutions, and online shops. In less than two years, Swipe has grown exponentially, a trajectory significantly influenced by our investors' contributions.

Are there plans to extend Swipe.bg’s reach beyond Bulgaria?

Indeed, we are excited about our ongoing expansion. Greece marks our initial venture outside Bulgaria, where we have already begun operations through the Skroutz marketplace. Plans to unveil our independent platform are in motion, slated for early 2024. Subsequently, we aim to penetrate markets in Romania, Hungary, Czech Republic, Slovenia, Slovakia, and Poland.

In light of the growing emphasis on sustainability, how does Swipe.bg contribute to the circular economy and e-waste reduction?

Swipe is deeply committed to fostering a circular economy. We recognize the significant environmental impact of smartphone manufacturing and are dedicated to minimizing carbon emissions by prolonging smartphone lifespans. Beyond offering sustainable options to consumers, we also collaborate with companies to enhance their ESG scores by transitioning to refurbished smartphones.

What has been an unexpected lesson since Swipe’s inception?

The overwhelming demand for professionally refurbished smartphones took us by surprise. Each device we acquire is sold within a month, and we have amplified our business fifteen-fold in under six months. As we secure more working capital and funding, we anticipate sustaining this robust growth trajectory.

With Swipe raising €1 million in funding, how will this capital injection bolster the company’s development?

This funding is earmarked for three pivotal milestones. We aim for an aggressive market roll-out in Bulgaria, targeting €20 million revenue within two years. Concurrently, we’re working to cultivate a scalable partnership model with electronic retailers and telecoms to expedite our expansion across the Central and Eastern European region.

Any advice for budding entrepreneurs embarking on their journey?

Entrepreneurship can often feel like being thrown into a stormy ocean teeming with sharks, especially when you’re unprepared and unsure how to swim. In those moments of despair and overwhelming odds, the choice is binary - succumb or fight relentlessly. My unequivocal advice is to never yield. Persist, fight, and keep kicking no matter the odds. Miraculously, help often arrives when least expected, pulling you to safety and success.

Mihail Dimitrov's journey with Swipe illuminates the unwavering spirit, resilience, and innovation required to transform a personal setback into a groundbreaking enterprise. Under his stewardship, Swipe is not just a platform for trading smartphones but a beacon of sustainability and trust in the second-hand marketplace.

****Explore the investment opportunity on SeedBlink.