Nick Ramsay, CEO & Co-Founder, Circular
What happened to the devices that you no longer use? According to an NTU survey conducted in 2019, 64 per cent of respondents in Singapore hoard their old mobile phones and laptops.
“Many consumers purchase electronic devices on a constant cycle of upgrades and replacements. Despite their ‘old’ devices not being at all outdated when they upgrade, the devices languish at the back of cupboards and the bottom of drawers. All this has a significant environmental impact as far as resource consumption and electronic waste generation is concerned,” writes Circular CEO and Co-Founder Nick Ramsay in an email to e27.
This is where Circular steps in. The startup builds a subscription-based consumer electronics marketplace for Asia Pacific customers that aims to accelerate the adoption of the circular economy.
Backed by Y-Combinator, Circular says that it is able to help customers save up to US$745 with a 12-month subscription for devices such as an iPhone 14 Pro Max 128GB with damage cover.
Its catalogue includes gaming devices such as PlayStation 5 and Microsoft XBox. Apart from that, it is also looking to launch an “upgrader package” that allows customer to upgrade to new devices as they are launched or swap to new models.
“By shifting from a model of ownership to one of access, Circular encourages customers to use technology in a way suits their lifestyle. This approach maximises the useful lives of devices while minimising waste through refurbishment and safe recycling. Customers no longer need to take on short-term credit card debt, BNPL schemes, or long-term lock-ins with telcos. With Circular’s low-cost monthly subscription, people can experience the benefits of the latest technology at a fraction of the cost,” Ramsay explains.
The service is currently used by businesses such as climate tech startup Unravel Carbon, fintech company CardUp and digital media group GRVTY Media.
It is also a corporate partner with Go Green SG, a whole-nation movement led by the Ministry of Sustainability and Environment in Singapore.
Living the Circular economy
As a startup that aims to accelerate the adoption of the circular economy, Circular sees impact as a foundation of their business model.
“Every customer we onboard is shifted out of the take-make-waste ‘linear economy’ and so multiple devices are permanently removed from the waste stream. What’s especially exciting is that we see our customers come back for multiple devices, indicating that they quickly see subscriptions as better than buying are shifting their consumption preferences to the circular economy,” Ramsay explains.
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In terms of target, Circular wants to achieve having six users per device, “So that each device’s useful life is maximised before being retired and properly recycled.”
Ramsay also explains that, due to the impact-driven nature of its business model, there is no trade-off between impact and profitability.
“The reality is that in Singapore today, only 10 per cent of smartphones reach a second owner. What is more common is that phones get placed in a drawer and kept as a spare, ‘just-in-case’ option. By our calculations, smartphones are typically only used for 33 per cent of their useful lives – they then spend approximately 33 per cent in storage, and another 33 per cent in the e-waste stream,” he says.
“Ultimately, this is a problem of underutilisation, which Circular is aiming to resolve with our subscription model. By keeping products in use for longer and precious materials out of landfill, we hope to gradually shift patterns of consumption. That’s where the name Circular comes from.”
Circular is currently run by a team of 30 that is divided between Singapore and Sydney, Australia.
In addition to its acceptance to Y Combinator, it has raised two funding rounds from investors across Singapore, Australia and the US.
“We have big plans for growth in Australia and New Zealand where our early testing has shown an incredible amount of demand for subscription-based tech,” Ramsay closes.
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Image Credit: Circular
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