THE chairman of Redeem Holdings has said the Bathgate-based phone recycling business aims to triple in size and may float on the stock market after securing £15m funding from London-based financiers.

Trevor Bayley said Redeem was pleased to have secured significant institutional backing from Praesidian Capital and Connection Capital to maintain its rapid growth.

"We will continue to review our corporate funding options, including flotation, as we plan to treble in size over the next three years," said Mr Bayley.

The funding round follows a period of rapid growth for Redeem, which has capitalised on the booming popularity of smartphones.

Preasidian and Connection said Redeem has grown revenues at around 50 per cent annually over the last four years. Sales are expected to reach £90m in the current financial year. They noted most of the traded-in devices Redeem handles are data wiped, refurbished and resold into a growing number of end markets, which include European phone retailers.

Devices are also sold in developing countries where people may want the latest products but not have the money for new devices.

The launch of the iPhone6 is expected to lead to a surge in the number of used handsets being recycled as people trade in their unwanted older models.

Founded in Scotland in 1999, Redeem has developed operations across Europe, Asia and the Middle East helped by a series of acquisitions.

Founders Jamie Rae and David McCabe sold their shareholdings in 2011, in a deal described as being worth "several million".

Mr Bayley, a founding partner of the HG Capital private equity business, took charge in 2012.