Sustainable IT Services Firm Onepak Raises $20 Million from Private Equity

Nuveen's private equity arm has invested $20 million into Onepak Inc., a sustainable IT services firm and ServiceNow partner that helps channel partners and end-customers to return, recycle, resell, or relocate IT devices.

Onepak, founded in 2005, is based in Boston, Massachusetts. The company develops ReturnCenter, an e-waste management, reverse logistics and circular economy platform for service providers and end-customers.

Nuveen, based in New York, has business roots that extend back to 1898. The asset management firm, a TIAA company, serves asset managers, institutions, financial intermediaries and individual investors across more than 30 countries.

This OnePak investment involves the Nuveen Private Equity Impact team -- which invests in businesses that drive low-carbon outcomes.

OnePak ReturnCenter: Circular Economy IT Services Platform

ReturnCenter allows original equipment manufacturers (OEMs), leasing organizations, technology resellers and recyclers to "manage the movement, redeployment, data destruction, disposal, and end-to-end chain of custody of used electronic devices from businesses and consumers," Onepak asserts.

The ReturnCenter platform has "facilitated the return of more than 2 billion pounds of devices on behalf of more than 200,000 customers," Onepak asserts. Key customers include Dell Technologies, IBM, United Technologies, Carrier, Diebold, General Motors, Toyota, USBank and DLL Group, among others.

ServiceNow dashboard: The ReturnCenter app integrates with ServiceNow. That connection allows ServiceNow users -- such as IT Asset Disposition (ITAD) businesses and end-customers -- to "schedule, track and report on transportation of hardware assets right within ServiceNow."

Nuveen Invests in OnePak: Executive Perspectives

In a prepared statement about the investment, Onepak CEO Steve Andon said: "“E-waste is one of the fastest growing waste streams, globally, with only a fraction being reused or recycled properly. By leveraging an extensive logistics partner ecosystem on our frictionless technology platform, Onepak addresses the pain points that prevent devices from being redeployed or receiving proper end-of-life treatment. We look forward to partnering with Nuveen to further develop the functionality and reach of the ReturnCenter platform to meet the enormous global market need.”

Added Nuveen Managing Director Ted Maa: "Onepak has developed a world-class platform and partner ecosystem to manage the complex reverse logistics needs of the electronics aftermarket. We are pleased to be working with Onepak – leveraging our experience growing circular economy and climate-mitigating businesses – to create global impact by scaling the amount of e-waste that is diverted from landfills.”

E-Waste Reduction, ITAD and Recycling Services: Market Forecasts

Onepak's platform serves several fast-growing markets. For instance:

IT Asset Disposition: Demand for IT asset disposition (ITAD) services is accelerating. Indeed, the global ITAD market will have a 9.1% compound annual growth rate (CAGR) from 2023 to 2024, The Business Research Company forecasts. Total ITAD spending will reach $28.36 billion in 2028 -- which represents an accelerated 9.7% CAGR from 2024, the researcher said. A separate report, from Research and Markets, predicts annual ITAD spending will reach $34 billion by 2030, up from $16.8 billion in 2022. That's a 9.2% compound annual growth rate (CAGR), the researcher said.

E-Waste Reduction: Customer demand for e-waste reduction and circular economy services is surging. Indeed, the global e-waste management industry will reach $244.56 billion by 2032, up from $57.81 billion in 2022, according to Allied Market Research. That's a 15.7% compound annual growth rate (CAGR), the market research firm said.

Channel Partners: Roughly 50% of partners worldwide said that they expect to generate revenue from sustainability solutions in 2024 – up three percentage points from 47% in 2023, according to research firm Canalys.

Data Centers: By 2027, 75% of organizations will have implemented a data center infrastructure sustainability program, up from less than 5% in 2022, Gartner predicted.

Still, the vast majority of MSPs (managed IT service providers) and channel partners lack recurring revenue programs focused on sustainable IT services, we believe. We'll be watching to see if or how Onepak helps partners to drive monthly recurring revenues (MRR) that involve end-customer device returns, recycling, reselling, or relocating of such devices.