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pvtIQ

pvtIQ leverages Smartkarma’s technology and distribution to deliver high-quality research and data on Asian private markets.

Private Markets Analyst, pvtIQ

Beier Luo

Private Markets Analyst

Private Capital Markets

<h2>Executive Summary</h2>
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<li>
<strong>Early Mover in Consumer Device Subscriptions:</strong> Circular runs a subscription platform for premium phones, laptops, tablets, and gaming devices, serving consumers directly and SMEs through Circular for Business. Founded in 2021, it was among the first consumer-focused players in the region. It sets itself apart from traditional enterprise leasing by bundling damage cover, refurbishment, and upgrade options into a single monthly fee.</li>
<li>
<strong>Strong Growth and Institutional Validation:</strong> Revenue has grown rapidly since launch and more than doubled in each of the last two years, driven by rising adoption among both consumers and SMEs. This momentum is backed by equity funding from top-tier investors including Y Combinator.</li>
<li>
<strong>Capital Intensity Weighs on Profitability:</strong> Subscriber growth requires upfront device purchases ahead of subscription income, and losses before tax have widened as the device fleet has grown. However, losses have narrowed considerably relative to revenue, and the path to profitability depends on securing further financing and redeploying refurbished devices across multiple subscription cycles.</li>
</ul>

Executive Summary


Early Mover in Consumer Device Subscriptions: Circular runs a subscription platform for premium phones, laptops, tablets, and gaming devices, serving consumers directly and SMEs through Circular for Business. Founded in 2021, it was among the first consumer-focused players in the region. It sets itself apart from traditional enterprise leasing by bundling damage cover, refurbishment, and upgrade options into a single monthly fee.

Strong Growth and Institutional Validation: Revenue has grown rapidly since launch and more than doubled in each of the last two years, driven by rising adoption among both consumers and SMEs. This momentum is backed by equity funding from top-tier investors including Y Combinator.

Capital Intensity Weighs on Profitability: Subscriber growth requires upfront device purchases ahead of subscription income, and losses before tax have widened as the device fleet has grown. However, losses have narrowed considerably relative to revenue, and the path to profitability depends on securing further financing and redeploying refurbished devices across multiple subscription cycles.


Circular: Building a Scalable Device-As-A-Service Platform (Initiation)