look news india
There are many business ideas in the third season of Shark Tank India-3. Recently a company based on old phone Rs. Business worth Rs 200 crore came. When the founder of this startup came on stage, his idea didn't impress the Sharks much. But when it said that it would make sales of Rs 240 crore this year, everyone was surprised. Refit startup has become the second largest seller of refurbished phones in the country after Cashify.
Refurbishing used phones
ReFit refurbishes used mobiles. The startup was founded in 2017 by Avneet Shetty and Saket Saurav. His business is spread in 80 cities of the country. The turnover of his company in the year 2022-23 was Rs 187 crore. This year it is expected to increase to Rs 240-250 crore. Before starting the startup, Avneet and Saket worked at ShopClues. His annual package was also around Rs 40 to 45 lakh.
Where did the idea come from?
Studied MBA with Saket and Avneet. After studies, Avneet started working in Videocon and Saket joined LG. After about 5 years both of them joined ShopClues. There he started the refurbished category. He started doing tremendous business. At that time, the package of both in ShopClues was around Rs 40 lakh each. Both of them planned to leave their jobs in 2017 and start their own business. At that time the market of refurbished phones was growing rapidly in western countries. Seeing this he became confident that it would definitely grow in India also.
Initially around Rs. 55 lakhs were invested
Both of them had invested about Rs 55 lakh to start the business. Both of them had also taken a loan of Rs 15 lakh each. Based on powerful ideas and industry contracts, his company started making profits from day one. Both of them first decided to strengthen their hold in the offline market. It focused on B2B. He started using whatever industry contacts he made while working at ShopClues. When retailers received strong returns, they also started placing orders. Initially, both co-founders would keep the phones in their cars and drive them to retailers.
Difference Between Refurbished and Repaired Phones
Renovation and repair are two different words. If the phone gets damaged, it is repaired and sold to another customer. Many times, if there is no problem with the phone, people sell it and buy a new mobile. But in the process of refurbishing, the phone is passed through certain parameters and its damaged parts are replaced and sold in the market with warranty.
How does refit work?
The startup accepts phones in return from Amazon-Flipkart or any other retailer. After this the Refit Diagnostic app runs on the phone. The in-house team understands and resolves mobile issues. When the phone is completely repaired, it is taken to the retailer for sale. Refit has sold around 15 lakh phones so far. Talking about the future plans of the startup, the founders of Refit have invested Rs. Valuation of Rs 400 crore instead of 0.5 per cent in Shark Tank. A demand of Rs 2 crore was made. But after shark talks Saket-Avneet paid Rs. Rs 200 crore in exchange for 1 per cent equity at a value of Rs. A deal was made for Rs 2 crore and one per cent royalty. Anupam Mittal, Amit Jain and Vinita Singh are in the deal until the Sharks are paid Rs 3 crore.