Consumer electronics eCommerce business Harris Technology (ASX:HT8) continued to build momentum during the third quarter of the 2025 financial year (Q3 FY25) after locking in a $1.5 million investment from Taiwanese tech giant FSP Technology to facilitate expansion into new product categories for its emerging ‘Refurbished Tech’ division.
Harris originally launched its Refurbished Tech business in 2023 to capitalise on its strong marketplace presence and established supply chain infrastructure built over a multi-decade history.
So far, the company has primarily been selling laptops, monitors, routers, servers, and other accessories via this division.
Expansion plans
Harris is now embarking on a path to expansion after securing the cash injection from FSP through a $1.5 million private placement at a 100 per cent premium to the company’s share price.
Management noted that the funding is being applied to boost its presence in high-growth product segments which include the refurbishment of pre-owned electronics.
In particular, the group aims to scale its Refurbished Tech division by securing more stock that is suitable for refurbishment, whilst also testing additional product ranges on the market. These include IT products, devices, and household appliances.
It believes such offerings represent a significant opportunity to diversify the company’s revenue streams, expand retail channels, and enhance overall margins.
The Refurbished Tech segment has already helped the company deliver a notable uplift in gross product margins, reaching 34.9 per cent during the first half of FY25 compared to 27.1 per cent during the previous corresponding period.
Harris Technology chief executive officer, Garrison Huang, commented:
“It has been pleasing to see the momentum generated by our refurbished business and the gaining of attention from FSP which has provided us with the capital injection to scale the business.
Over the coming months, we see a substantial opportunity to leverage Harris Technology’s global supply chain infrastructure to solidify our position as a leading seller of refurbished tech products which will enable us to expand our product range in FY26 and beyond.”
Established brand and infrastructure
Founded in 1986, Harris is a well-established brand in Australia’s consumer electronic retail market covering a very wide range of products for small and medium-sized businesses.
The group transitioned to an online-only business in 2014 and has since grown to become one of Australia’s largest online marketplace sellers. It mainly retails IT and consumer electronic products through its own online store, and across all major marketplaces such as Amazon, eBay, Catch, and Kogan.
Harris now aims to capitalise on such strong eCommerce infrastructure to grow its operations effectively, with the refurbished tech market identified as a key prospect to generate significant scale.
Market opportunity
More specifically, the company sees an opportunity to emerge as a market leader in the refurbished tech sector by consolidating what it considers to be a fragmented Australian market. And the company’s online-only operational model and experience in supply chain management could play a key role in scaling its operations.
According to research organisation Spherical Insights, the global refurbished electronics markets is projected to grow from about US$48 billion in 2023 to more than US$120 billion by 2033. This represents a compound annual growth rate of about 10 per cent.
Spherical Insights noted that the rapidly expanding market provides buyers with an appealing proposition of high-quality devices at a lower cost, with its growth being fuelled by cost-conscious customers and a greater focus on environmental sustainability.
Notably, the research house estimates that the Asia-Pacific region will grow at the faster rate over the forecast period.
In Q3 FY25, Harris generated $3.3 million in sales whilst also ramping up the sourcing of pre-owned stock suitable for refurbishment. It ended the period with $3.3 million in inventory on hand, which includes $2.8 million of purchased inventory.
The company held $2.1 million in cash and a $6 million undrawn finance facility at the end of March 2025.