Q: What is the traditional product lifecycle within Mexico’s electronics sector, and how is Reducto disrupting that model?

Vittoria Zaniboni (VZ): Reducto is a circular technology startup and a spin-off from Daysitek, a company with over 30 years of experience in the market. Reducto was created to change the life cycle of technological devices by shifting from a linear economy to a circular one.

The typical process is to manufacture, transport, use, and then dispose of devices such as mobile phones, laptops, tablets, and televisions. Reducto seeks to transform this model by promoting a circular approach: manufacturing, transporting, using, repairing, and reusing devices, and finally, when a product reaches the end of its life cycle, recycling what cannot be repaired. The goal is to extend the useful life of technology and reduce electronic waste through repair and recycling, rather than disposal.

Q: How does Reducto’s business model contribute to building a circular economy within the tech industry?

VZ: The goal of the circular economy is to transform the way we live, think and consume IT products. It focuses on giving new value to raw materials and avoiding exploiting natural resources.

Tomas Morán (TM): The circular economy redefines the traditional model of consumption. It is not opposed to innovation, but it reshapes how innovation reaches different social groups. Products can have a second or third life depending on people’s economic capacity, preferences, and needs. At Reducto, we focus on smartphones, which have a much higher turnover than other electronics, but will eventually expand to other product categories. In Mexico, for example, the average phone replacement cycle is every two years, even though many devices continue to function well beyond that. It does not make sense for a product to lose its usefulness after just two years; it can continue to serve new users. Market trends and fashion might make a model less attractive to some, but it can still be valuable to others. We have built the structure and ecosystem to make this circular process easier, not just offering high-quality refurbished devices, but also enabling customers to sell their previous ones. 

This is what the circular economy enables: a system where used products, once restored to a certain standard, can be valid alternatives for many people. The idea is to keep materials and resources with potential environmental impact in use for as long as possible. The circular model works because it saves resources and recognizes that a used product does not lose all its value. This approach is not unique to technology, as secondary markets already exist for clothes, cars, and luxury goods. 

Q: How does Reducto change the attitudes of consumers and companies toward reused or recycled technology?

TM: Trust plays a key role in this process. Trust is built through positive experiences and access to reliable information, and the balance between these two factors helps drive acceptance. It depends on confidence, quality, and transparency. Unfortunately, consumers in Mexico have had limited access to accurate information about refurbished technology, even as they have begun to recognize it as a viable option. Compared to other countries where this segment is more developed, awareness and understanding are still growing. It has also taken time for companies like ours to establish the conditions needed to formalize and standardize the refurbishment process. Our goal is to achieve the highest quality and consistency standards possible, setting a strong foundation for the industry’s growth.

VZ: We are also building on well-established and proved international models. These companies have proven that the circular technology model works, and we are adapting that success to the Mexican market. During Climate Week, we hosted an interactive session that helped people better understand that refurbished devices are reliable and high-quality. Each device undergoes a diagnostic process using internationally recognized software that evaluates over 80 technical aspects, ensuring functionality and performance.

Our operations are based in Industrial Vallejo, where a team of experts manages the entire refurbishment process. One of our main challenges in Mexico is building consumer trust, which we address by increasing visibility and transparency. Although we do not yet have physical stores, our pop-up events allow customers to experience the devices firsthand. Through our website and mobile app, we also aim to build confidence by making the process of selling or buying refurbished phones simple and secure. Our app, available on the Apple Store in Mexico, lets users evaluate their devices in just three steps and receive an instant quote. All these efforts are all designed to strengthen consumer trust and promote a culture of circular technology in the country.

Q: How has Reducto made refurbishing and recycling used technology profitable, particularly compared to unlicensed or informal providers? 

TM: We are not competing against the existing market; rather, we offer a complementary alternative. Our focus is on providing a premium product range with a standardized process that ensures consistent quality. Through economies of scale, we maintain competitive pricing while guaranteeing high performance. We also see value in the presence of smaller or more informal repair and resale options, as they reflect growing recognition of the “right to repair.” However, such alternatives often lack the assurance of product quality and warranty coverage that we provide.

Our model emphasizes certified quality, reliability, and trust. Each device comes with a warranty and meets rigorous standards, which helps strengthen consumer confidence in refurbished technology. Beyond product quality, our operations generate local employment and contribute to community development in Mexico by training and supporting technical talent. At the same time, our circular technology approach helps reduce carbon emissions by extending the lifespan of electronic devices and minimizing electronic waste.

VZ: One of our main competitive advantages is the complete transparency of our process. For example, during Climate Week in Mexico, we organized a three-day device repair workshop in the Hub Innovation area, where visitors could observe the refurbishment process in real time. Transparency also extends to our digital platforms. Both our website and our app are open to the public, allowing users to see how we operate. Our proprietary trade-in software evaluates devices based on market conditions, providing fair and consistent pricing. We also use internationally recognized diagnostic software that enables secure data erasure and full functionality testing  Finally, our diagnostic tools are aligned with international standards for checking cellular network status, confirming that devices are not blocked, stolen, or reported elsewhere.This ensures that every device we resell meets global technical standards.This level of traceability and verification gives customers confidence that the refurbished devices they purchase are fully reliable, secure, and certified.

Another key advantage is our certification framework. Beyond cost reduction, companies increasingly seek partners that can help lower their carbon footprint, water use, and electronic waste. Our model directly supports those sustainability goals by extending the lifecycle of devices and reducing the demand for new raw materials. 

Q: How do you source electronic waste or used devices, and what standards guide your refurbishing and recycling processes to ensure safety and sustainability? 

TM: We maintain a broad supply chain through our relationships with brands and various partners. Much of our inventory comes from trade-in programs, and is supplemented through auctions with different operators and wholesalers. This allows us to continuously expand and adjust stock based on demand.

Demand shifts over time, especially with the release of new device models, so we constantly work to maintain the widest possible product availability. Our goal is to offer customers a diverse range of devices. Our team continues to develop processes and expertise to handle a growing number of items efficiently, ensuring we can meet customer needs while supporting the circular model.

VZ: Our target audience includes end consumers looking for affordable technology, as well as individuals seeking more environmentally friendly options. Many of these consumers, between 40% and 50%, prioritize products with a reduced environmental impact and are willing to pay a premium for sustainable options. In our case, they do not pay extra but receive a discount, which encourages adoption. Our target clients include SMEs, mid-sized, and large companies, particularly those that use multiple devices like smartphones or laptops. These organizations are looking not only to optimize their IT budgets but also to reduce the environmental footprint of their technology lifecycle. Public institutions that promote circular procurement are also part of our target.

The environmental impact of device turnover in Mexico is significant. Annually, 30 million new smartphones are sold. Producing 30 million smartphones is equivalent to the annual emissions of 150,000 cars (assuming each smartphone produces 55kg CO2e). Water usage is also substantial: manufacturing these devices consumes enough water to fill 900,000 Olympic swimming pools. Electronic waste from these smartphones could cover 78 football fields, two meters deep. Many companies replace devices every two years, often donating or discarding old equipment. Our goal is to shift this behavior toward a circular model. For businesses, we offer devices as a service, where they pay for the functionality rather than owning the device outright. This model ensures circularity, reduces environmental impact, and generates cost savings. At the end of the period, we recover the equipment paying a residual value / or we  provide a discount for upgrading to the latest model, supporting continuous reuse and minimizing e-waste.

Q: What measurable impacts or cost savings can be achieved through your operations?

VZ: Reducto has been on the market for one year. In this first year, the company refurbished over 10,000 devices, preventing about 400t of CO2 emissions. The refurbishment process uses almost no water and has prevented the consumption of over 150 million L of water. It avoided the extraction of around 2 tons of raw materials, including copper, silicon, and gold. These initiatives also help companies reduce their technology costs by about 40%.

Each batch of 10,000 refurbished devices creates roughly 12 green jobs. Reducto employs four to five people in its refurbishment operations, but the company projects growth in both employment and output. By 2030, Reducto aims to refurbish 300,000 devices, cumulatively avoiding 20,000t of emissions. Although the refurbishment rate represents only 0.03% of the 30 million smartphones sold annually in Mexico, Reducto aims to increase adoption of circular technology year by year.

Next year, Reducto plans to implement the “Refurbished Electronic Devices” sustainability methodology, developed by the French company Rainbow to measure the emissions saved during the refurbishment lifecycle. Additionally, Reducto aims to obtain R2 certification, a global standard for responsible recycling and refurbishment facilities. Reducto at the moment works with R2 certified partners for recycling of its devices.

Q: What opportunities exist for Reducto to expand geographically, by product category, or along the value chain?

TM: There is still significant room for growth just with smartphones, but we already started working with products that share similar components, such as tablets. Eventually, we plan to include accessories like smartwatches and computers. Expanding our product range requires time. Each product has its own recycling and refurbishment guidelines. Components cannot be swapped interchangeably. Our goal is to develop a multi-product offering over time, but we are careful not to overextend our product lineup or compromise our standards.

VZ: Maintaining a high standard of quality is closely linked to sustainability. For example, the Life Cycle Assessment (LCA) is conducted almost product by product. We cannot include too many products at once without compromising the integrity and quality of our devices. 

Reducto is a signatory of The Climate Pledge, a commitment supported by over 600 companies and backed by Amazon. Through this pledge, Reducto aims to achieve full carbon neutrality by 2040.