Sprout

What Sprout does

Sprout is a privately held IT asset lifecycle management and electronics disposition company headquartered in Statesville, North Carolina, founded in 2014 by Shelly Li and Arun Karottu originally as Smart Metals Recycling. The company operates across the full technology lifecycle, providing deployment and installation services, AI infrastructure lifecycle management, data center decommissioning, white glove logistics, certified data destruction, and end-of-life IT asset disposition (ITAD), all anchored by its proprietary SmartERP platform that serves as the system of record for asset tracking, compliance documentation, chain-of-custody, ESG reporting, and value recovery workflows. Sprout's technology is differentiated by RFID-enabled serial-level asset tracking, automated Certificates of Destruction and Recycling, one-click ESG dashboards, and APIs that integrate into enterprise IT environments. The platform is used by 80% of the top 10 S&P 500 companies, and the company maintains customer NPS scores of +70 to +90 with 90% retention.

Sprout's business model combines professional services fees for ITAD, deployment, and decommissioning work with hardware resale and remarketing revenue (achieving 20-40% higher resale values than competitors), emerging SaaS-style access to SmartERP, and configure-to-order AI hardware sales through its wholly owned subsidiary Velerity Compute. Customers include hyperscale cloud providers, financial institutions, telecom and media organizations, healthcare systems, and manufacturers, served through four US-owned R2v3-certified facilities totaling 330,000+ sq. ft. and a global partner network spanning Antwerp, London, Dubai, Bengaluru, Hong Kong, Tokyo, Singapore, and Sydney. All operations are backed by NAID AAA, R2v3, ISO 9001, 14001, 27001, and 45001 certifications with NIST 800-88 data destruction standards. The company received a majority investment from private equity firm Recognize in 2022, was rebranded to Sprout in April 2026, and is preparing to open a 127,000+ sq. ft. Garland, Texas flagship facility in H2 2026 purpose-built for AI hardware lifecycle operations.

Name

Sprout

Legal name

Smart Metals Recycling, LLC

Website

https://www.sproutup.com

Company type

Private

Founded year

2014

Operating status

Operating

Headcount range

101–250 employees

Short description

Sprout is a privately held IT asset lifecycle management and ITAD provider serving hyperscalers, Fortune 500, financial services, healthcare, telecom, and manufacturing through its proprietary SmartERP platform and four US-certified facilities, plus configure-to-order AI hardware via subsidiary Velerity Compute.

Ownership category

akta.pro rank

Product category

IT Asset Disposition & Lifecycle Management

NAICS

Computer Facilities Management Services (541513), Computer Systems Design and Related Services (5415), Software Publishers (513210)

SIC

Wholesale-Computers & Peripheral Equipment & Software (5045), Services-Computer Programming Services (7371), Services-Computer Programming, Data Processing, Etc. (7370)

akta.pro primary industry

IT Asset Disposition (ITAD) & Secure Data Erasure (BPAEAOAK)

akta.pro secondary industries

Enterprise Hardware Recycling (Servers, Storage, Networking) (BPALAIAI), IT Asset Lifecycle Services (Procure-to-Retire) (BPAEAOAF)

Keywords

• IT asset disposition
• Electronics recycling
• Data center decommissioning
• IT lifecycle management
• Asset value recovery

Headquarters

HQ city

Statesville

HQ country

United States

HQ region

North America

Offices13 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Technology or R&D, Marketing or Sales, Infrastructure, Supply Chain

Revenue model

1. IT Asset Disposition (ITAD) Services: End-of-life IT asset retirement services including certified data destruction, decommissioning, logistics, and secure disposal. Revenue generated through service fees for processing retired hardware.
2. Hardware Resale and Remarketing: Sprout audits, wipes, tests, refurbishes, and remarkets retired IT equipment through global resale channels. Recovered resale value is returned as credits to clients offsetting future lifecycle services. Typically achieves 20-40% higher resale value than competitors.
3. SmartERP Platform Licensing / SaaS: SmartERP serves as a tech-driven asset lifecycle management platform. While primarily used internally to power services, it is positioned as a platform customers access for visibility, reporting, and lifecycle management.
4. Deployment & Installation Services: Full-lifecycle deployment and installation services for AI infrastructure and enterprise hardware fleets, including staff augmentation and configure-to-order operations for Velerity Compute systems.
5. Tested Reusable IT Equipment Sales: Wholesale (reseller) and end-user sales of tested, reusable IT equipment and components. Covers servers, GPUs, storage systems, laptops, and networking hardware, including Velerity-configured products.
6. Configure-to-Order Operations (Velerity Compute): Recertified components (A100, H100, H200, DGX A100 systems) are assembled into enterprise-ready systems and installed directly into data centers through Velerity Compute, a Sprout company.

Distribution channels6 records

Marketing channels7 records

Core offering

Sprout provides end-to-end IT asset lifecycle services—from deployment through operation to final disposition—anchored by its proprietary SmartERP platform that delivers real-time asset visibility, automated compliance documentation, one-click ESG reporting, and measurable value recovery for enterprise customers. Services span AI infrastructure lifecycle management, deployment and installation, staff augmentation, redeployment and circularity, data center decommissioning, white-glove logistics, certified data destruction, and IT asset disposition (ITAD), with hardware resale revenue typically achieving 20-40% higher recovery than competitors.

Product overview

Sprout is an intelligent technology-lifecycle platform that offers a unified system of record for IT asset management across the full technology lifecycle. The core product is SmartERP, an intelligent platform that provides real-time asset visibility, automated compliance documentation, one-click ESG reporting, and measurable value recovery. Sprout's portfolio includes lifecycle services (AI Infrastructure Lifecycle, Deployment & Installation, Staff Augmentation, Redeployment & Circularity) and end-of-lifecycle services (Data Center Decommissioning, Logistics/White Glove, Certified Data Destruction, IT Asset Disposition/ITAD). The company also operates Velerity Compute as a subsidiary for configure-to-order hardware assembly. All services are connected through the SmartERP platform, which tracks assets from first deployment through final disposition.

Differentiator

Problem solved

Functional benefit

Brands

• Velerity Compute: A Sprout company that offers enterprise-ready systems including A100, H100, H200, and DGX A100+ systems assembled from recertified components
• SmartERP

Products and services

• SmartERP Intelligent IT asset lifecycle management platform that serves as a single system of record for real-time asset visibility, automated compliance documentation, one-click ESG reporting, and measurable value recovery across global enterprise operations. Provides APIs for integration with existing enterprise environments.
• AI Infrastructure Lifecycle Full-lifecycle services for AI fleets covering build, operation, and recovery phases, including GPU repair, recertification, and component harvesting for hyperscale cloud and AI operators.
• Deployment & Installation Faster deployment of enterprise IT infrastructure with precision, visibility, and coordinated execution, including staff augmentation and configure-to-order operations for Velerity Compute systems.
• Staff Augmentation Technical talent that scales with customer operations for IT lifecycle management needs, including on-site deployment and integration support.
• Redeployment & Circularity Services to keep IT assets in use longer and recover more value through reuse and circular economy practices, including resale credits applied toward future Sprout refresh services.
• Data Center Decommissioning Secure infrastructure transitions without operational risk, managing the complete data center decommissioning process from planning through on-site removal and transport.
• Logistics (White Glove) White glove logistics with secure transport and real-time visibility, covering asset collection, GPS-tracked vehicles, sealed transport (FTLs, dual-driver methods for high-security loads), and chain-of-custody documentation.
• Certified Data Destruction Certified, auditable destruction of sensitive data across end-of-life IT assets using Blancco erasure and physical shredding to NIST 800-88 standards, with serial-level chain-of-custody tracking and Certificates of Destruction.
• IT Asset Disposition (ITAD) Secure, sustainable retirement of IT assets with maximum value recovery through resale, recycling, or destruction, powered by SmartERP tracking, R2v3-certified facilities, NAID AAA certified data destruction, and global resale channels typically achieving 20-40% higher recovery than competitors.
• Velerity Compute A Sprout company offering configure-to-order operations, assembling recertified components including A100, H100, H200, and DGX A100 systems into enterprise-ready systems installed directly into data centers.

Quantifiable outcome

• NPS score consistently between +70 and +90; +70 world-class customer NPS
• +6 more outcomes

Named customers3 records

Segments5 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Feature7 records

Partnerships

Four partnerships are on record, tiered core and minor.

• LimecoreStrategic or Co-development Partner · 1 January 2021Sprout partnered with Lime to repurpose retired server racks from a major social media company into battery charging cabinets for Lime's e-bike and e-scooter service centers. The partnership exemplifies circular supply chain principles — no new materials sourced, no overseas shipping, server racks repurposed for a decade of additional use. Both companies prioritize reuse before reclaiming, and reclaiming before recycling.
• Bill (Divvy)minorOthers · 1 January 2020Sprout has been a Bill (formerly Divvy) customer since 2020, using the platform to streamline expense management across the organization. This is a vendor-customer relationship where Bill's technology supports Sprout's internal financial operations.
• ComputerCarecoreStrategic or Co-development PartnerComputerCare, a leading provider of IT repair and logistics services, partnered with Sprout to support hardware at all points in the lifecycle. The partnership delivers end-to-end hardware lifecycle solutions combining ComputerCare's repair and logistics capabilities with Sprout's ITAD and asset retirement platform.
• LyftminorGTM or Marketing PartnerSprout partners with Lyft to empower communities through technology hardware giving. Donated technology hardware from enterprise refresh programs is provided to support Lyft's community empowerment initiatives.

Scale indicators10 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Sims Lifecycle Services: IT asset disposition and electronics recycling arm of Sims Metal Management, offering end-of-life IT services to enterprises globally. Direct competitor to Sprout's ITAD, data destruction, and value-recovery offerings.
• ERI (Electronic Recyclers International): One of the largest US IT asset disposition and electronics recycling companies, holding R2, e-Stewards, and ISO certifications comparable to Sprout's. Directly comparable on certified e-waste recycling, data destruction, and enterprise ITAD programs.
• Apto Solutions: Enterprise IT asset disposition and lifecycle management provider with certified processing facilities and resale channels. Closely comparable to Sprout's ITAD, data destruction, and refurbishment/resale business for enterprise customers.
• Cascade Asset Management: Enterprise ITAD provider offering certified data destruction, electronics recycling, and asset resale services. Comparable to Sprout in certified processing, enterprise lifecycle programs, and value recovery.
• CompuCycle: R2-certified IT asset disposition and electronics recycling provider focused on secure data destruction and enterprise ITAD. Comparable to Sprout in certified processing, data sanitization, and asset value recovery.
• Reclamere (now part of Apto): ITAD provider specializing in secure data destruction and enterprise electronics recycling, now operating under Apto Solutions. Comparable to Sprout's certified data destruction and chain-of-custody ITAD offerings.

Broad incumbents

• Iron Mountain: Global information-management company offering IT asset disposition, secure data destruction, and chain-of-custody services alongside broader storage and records management. Overlaps directly with Sprout's ITAD and data destruction services, though as part of a much wider portfolio.
• Dell Asset Recovery Services: OEM-led IT asset recovery and recycling program integrated with Dell's broader hardware portfolio. Competes with Sprout for end-of-life OEM and enterprise hardware disposition, though as part of a much larger hardware-vendor ecosystem.
• IBM Global Asset Recovery Services: Enterprise IT asset disposition and remarketing program offered by IBM alongside its broader hardware and services portfolio. Overlaps with Sprout's data center decommissioning and certified disposition offerings, especially for large enterprise accounts.
• Arrow Electronics (Asset Lifecycle Services): Global technology distribution and lifecycle services company offering IT asset disposition, remarketing, and reverse logistics. Comparable to Sprout's hardware resale and lifecycle management offerings, though as part of a much broader distribution business.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

Compliance7 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles13 records

Subsidiaries1 record

Funding overview

Funding rounds2 records

Investors2 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Sprout