Refurbished
Smartphones
Season 3 Episode 22
| Brand | Refit Global |
| Company Name | REFIT GLOBAL PRIVATE LIMITED |
| Founders | Saket Saurav, Avneet Singh |
| Original Ask | 2 crores for 0.5% equity at the valuation of Rs. 400 crores |
| Deal | 2 crores for 1% equity at the valuation of Rs. 200 crores and 1% royalty until 3 crores is recouped |
About the Product
Refit Global ensures customers receive top-tier quality products at half the price with their range of refurbished offerings. Their meticulous process involves thoroughly inspecting used devices to rectify any existing issues, ensuring a hassle-free user experience. Each device undergoes a comprehensive 47-step quality testing process to guarantee full operational functionality.
With Refit Global, customers can trust in the reliability of their refurbished products, backed by an assured warranty, providing them with peace of mind and 100% confidence in the brand. Refurbished devices are fully restored to work just like new, thanks to expert repairs and restoration efforts. Rigorous quality checks are performed on every device, ensuring that each product meets stringent quality standards. Customers can rest assured knowing that Refit Global’s refurbished products are certified, graded, and packaged in brand-new boxes, further enhancing their appeal and value proposition.
Founders & their story
- Saket Saurav
- Avneet Singh
Refit Global, founded in 2017, has established itself as a frontrunner in the refurbishment and resale of old phones, offering them with a renewed warranty. Its business model revolves around sourcing exchanged phones from diverse marketplaces and retail brand stores. Upon procurement, each phone undergoes a meticulous examination through an in-house diagnostic app, assessing it on 47 parameters. This comprehensive testing ensures that the refurbished phones meet stringent quality standards before being made available for sale. Refit Global’s commitment to quality is further underscored by conducting tests both before and after the repair process, ensuring optimal performance and reliability for its customers.
With a firm grasp on the Indian smartphone market, Refit Global has sold over 15 lakh devices and expanded its reach by launching its own website. Its robust distribution network enables the company to effectively penetrate the market, reaching a wide range of customers. This strategic approach has contributed to Refit Global’s significant presence in the industry, allowing it to capitalize on the immense market opportunity presented by the Indian smartphone market. The Indian smartphone market, valued at 2.08 lakh crores, provides ample room for growth and expansion. Additionally, the refurbished smartphone market in India stands at 41600 crores, representing a lucrative niche for Refit Global to tap into. By offering refurbished phones with added value through warranties, Refit Global caters to a segment of consumers seeking affordable yet reliable options in the smartphone market.
Financially, Refit Global operates on a bootstrapped model, reflecting its self-sustaining approach to growth. While the company has secured a loan of 2.5 crores from NBFCs to further its operations, it pays interest ranging from 14-16%. Despite this, Refit Global maintains a healthy margin, with an average selling price of 7000, and a business-to-retailer gross margin of 14%. These financial metrics highlight the company’s ability to navigate the competitive landscape while ensuring profitability and sustainability.
About the company
Refit Global’s fundamental vision centres on mitigating electronic waste by advocating for the recycling and refurbishment of overlooked second-hand gadgets. They firmly believe in the potential to extract value from discarded items, transforming waste into new, appealing products that offer higher utility at a lower cost to consumers. In alignment with the evolving landscape of digital technology and the increasing need for accessibility to high-cost gadgets, Refit Global plays a pivotal role in this larger endeavour. Their efforts contribute to enhancing the value of human lives while simultaneously reducing environmental pollution.
At the core of their mission is the objective to raise awareness and foster trust among gadget users regarding the merits of refurbished products. Contrary to common misconceptions, a refurbished product isn’t merely an outdated device; rather, it represents a reimagined iteration of its predecessor, boasting improved functionality and fully operational features, all at a significantly reduced price point. Refit Global’s endeavours serve as a testament to the potential for sustainable consumption practices, promoting the concept of “circular economy” wherein products are repurposed and reintegrated into the market, thus minimizing waste and maximizing resource efficiency. Through their commitment to innovation and sustainability, Refit Global strives to reshape consumer perceptions and redefine the value proposition of refurbished electronics in the modern marketplace.
Revenue
Refit Global experienced significant sales growth in August 2023, totalling 35 crores, with a corresponding net profit ranging between 90-95 lakhs for that month. This uptick in sales reflects the company’s ability to capture market demand effectively. However, for the full fiscal year 2022-2023, Refit Global reported a profit after tax (PAT) of 1.08% of its total sales, amounting to 1.08 crores, indicating a relatively modest profitability margin.
During the fiscal year 2022-2023, Refit Global achieved total sales of 187 crores, representing a substantial revenue stream. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the same period amounted to 2.7 crores, indicating its operational efficiency and ability to generate earnings from its core business activities. This suggests that despite the lower net profit margin for the fiscal year, Refit Global was able to maintain a healthy level of operational earnings.
Founders’ Ask
2 crores for 0.5% equity at the valuation of Rs. 400 crores.
Offers
Anupam and Amit’s offer: 2 crores for 1% equity at the valuation of Rs. 200 crores and Rs 100 per unit sold as royalty until 4 crores is recouped.
Vineeta’s Offer: 2 crores for 0.5% equity at the valuation of Rs. 400 crores and 1.5% royalty until 4 crores is recouped.
Anupam and Amit’s revised offer: 2 crores for 1% equity at the valuation of Rs. 200 crores and Rs 70 per unit sold as royalty until 4 crores is recouped.
Vineeta, Anupam and Amit’s offer: 2 crores for 1% equity at the valuation of Rs. 200 crores and 1% royalty until 3 crores is recouped.
Founders’ Counteroffer:
Offer 1: 2 crores for 1% equity at the valuation of Rs. 200 crores.
Offer 2: 1 crore for 0.5% equity at the valuation of Rs. 200 crores and 1 crore debt.
Final Offer
Vineeta, Anupam and Amit: 2 crores for 1% equity at the valuation of Rs. 200 crores and 1% royalty until 3 crores is recouped.
