Murfy
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Circular economy
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waste reduction
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responsible consumption
- Decent work and economic growth
- Responsible consumption and production
- Action against climate change
Pitch
Presentation
Murfy is a Social Utility Enterprise (ESUS) offering a household appliance repair service. Over the past five years, the company has become a leading player in appliance refurbishment in France. In 2022, its revenue reached €8 million, a 60% increase compared to 2021. Seventy-five percent of the company’s revenue comes from in-home repair services for individuals, while the remainder is generated from refurbishment activities across five sites in France. Positioned in a sector traditionally dominated by new appliance retailers (such as Darty and Boulanger), Murfy relies on experienced technicians to deliver high-quality service. The company offers a comprehensive range of services, including in-home repairs, refurbished appliances and spare parts sales, technician training through an internal academy, and the collection of used appliances. Murfy has developed a diverse array of offerings that cover the entire value chain. Between 2022 and 2023, Murfy saw a 55% increase in the number of repair requests, a 13% increase in the average customer basket size, and a 5% decrease in customer acquisition costs. These impressive results come in the context of increasingly favorable regulations, including a significant increase in the Repair Bonus under the AGEC law (which will double on January 1, 2024). Murfy has already sought funding from LITA.co through bonds and is now opening its capital to citizens. This new fundraising round on LITA.co aims to support Murfy in achieving profitability by 2026, particularly by expanding its services to new regions in France.
To help make repair a common practice and significantly reduce the annual production of electronic waste, consider contributing to Murfy's financing.
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Team
5 co-founders, 300 employees including 170 technicians
The five founders met during their higher education studies: four are engineering graduates (from Centrale Paris, École des Ponts et Chaussées, Polytechnique, and ENSTA), and the fifth holds a degree from a business school (EDHEC). After gaining three years of experience in various major companies (SNCF, EIFFAGE, VINCI, etc.), these five friends reunited to create a meaningful enterprise. Outraged by the mountains of waste produced each year, they are united by their ambition to double the lifespan of household appliances.
Challenges
Every year in France, 28 million household appliances break down, but only 5 million are repaired. This results in 23 million products being discarded annually, amounting to an estimated 920,000 tons of electronic waste (source: ADEME 2014), equivalent to 24 Titanic ships. The insufficient repair volume is largely due to uncertain costs and very long intervention times. This is especially wasteful since 80% of appliances can be repaired (with repair costs being less than 40% of the price of a new appliance). Murfy has also identified a shortage of specialized labor capable of effectively and sustainably addressing the repair of these appliances.
Solutions
Murfy offers a household appliance repair service that covers 40% of French households and helps reduce the amount of electronic waste. With their technical expertise and digital tools, Murfy technicians are able to provide a repair solution in over 85% of cases. In more than 50% of these cases, no spare parts are needed. Murfy also offers a refurbishment service for reliable, guaranteed appliances at attractive prices. Digital tools help optimize the company's carbon footprint by reducing repair travel times and facilitating first-time problem resolution. To assess the environmental impact of the company, we can look at the amount of CO2 equivalent needed to produce household appliances. According to data from various studies (Baromètre du SAV Fnac-Darty, Ademe study, INSEE), the annual production of large household appliances represents approximately 5 million tons of CO2 equivalent. In comparison, in 2017, domestic air travel emissions in France were 4.5 million tons of CO2 equivalent. By doubling the average lifespan of products through better repair services, Murfy effectively halves the impact of annual large appliance production. Additionally, Murfy has created Murfy Académie to internalize training and more easily maintain a pool of skilled technicians.
Economic model
Murfy's offer is divided into four services designed to meet consumer expectations and skills. The first service is home appliance repair for a fixed price known in advance. If the appliance is not repairable or if the cost of spare parts is too high, the repair fee is converted into a voucher to be used in Murfy's online store for refurbished appliances, which come with a 2-year warranty. Another service is the direct sale of refurbished appliances via Murfy's online store, coming straight from its workshops located in Nantes, Paris, Lille, Lyon, and Metz. There is also a service for selling spare parts from the refurbishment process. Additionally, Murfy offers training for becoming a technician through the Murfy Academy, which provides professional training in appliance repair for groups of 12 technicians over a period of 6 months, with a promise of employment within the Murfy teams upon completion. Murfy expects a significant increase in its revenue in the coming years, particularly due to the rise of the Repair Bonus, introduced by the Anti-Waste for a Circular Economy Law (AGEC) and implemented since December 2022. The Repair Bonus is an amount deducted directly from the consumer's bill when they go to a certified repairer to have their product fixed. In October 2023, the government decided to double the amount of the bonus starting January 1, 2024, which will greatly benefit Murfy's business.
Long term impact
Murfy's mission is to extend the lifespan of household appliances to reduce the negative externalities associated with their production and replacement:
- Promote the circular economy: Repairing rather than discarding and purchasing refurbished appliances help extend the life cycle of devices. Murfy also chooses to reuse spare parts from non-repairable appliances. On average, out of 45 received appliances, five are not repairable and will be repurposed as spare parts.
- Support employment and training for repair technicians: Murfy assists repair technicians in obtaining stable, well-paid, and educational employment in this highly competitive sector. Murfy currently employs 300 people and developed an internal training school for technicians in 2021. The Murfy Academy offers professional training in appliance repair for groups of 12 technicians over a 6-month period, with a promise of employment within the Murfy team upon completion. Funded by Pôle Emploi and regional authorities, the academy has trained over 220 technicians since its inception.