Redefining Recommerce: Inside Cashify’s 80,000 Square Feet Refurbishing Facility

Cashify recently hosted a famtrip for journalists at their Noida facility where we got to see first hand how the Indian recommerce player runs its operations and manages to run such a tight ship.

The refurbished electronics seller has a small core team including Mandeep Manocha, Co-founder and CEO, Nakul Kumar, Co-founder and CMO and Amit Sethi, Co-founder, Cashify. Manocha, who has founded companies such as ZazzyBox and Manak Waste Management and has a Chemical Engineering degree from Panjab University has been at the steering wheel as CEO for over twelve years now. The company crossed Rs 498 crore in revenue in FY 2022 and then Rs 816 crore in FY 2023 and is continuing its leadership in the refurbished electronics business. 

Mandeep Manocha not only answered our questions but was also our guide throughout the Cashify facility visit that spans across 80,000 square feet. The facility is spread across multiple tiers that starts from acquiring used devices and gathering them in bags to packing and dispatching them off to customers. 

The company, founded in 2009 as ReGlobe, is playing a pivotal role in changing the socio-economic dynamics as far as consumer technology is concerned. More specifically, smartphones. Cashify is enabling the aspirational working class to get the smartphones of their dreams and at the same time, demolishing the social stigma surrounding used tech products. Cashify is cashing in on this brilliant opportunity to democratize the premium smartphone segment which is dominated by iPhones. Cashify crossed Rs 935 crore in revenue in FY 2024 which is a 63 per cent increase in Profit After Tax (PAT) and a 72 per cent increase in EBITDA. 

The revenue split between smartphones and laptops is around 90-10, respectively, which builds a clear picture about the rising demand of used smartphones in the Indian market. “India is an aspirational market and everyone dreams of owning an iPhone,” says Mandeep Manocha, CEO of Cashify. “But spending Rs 90,000 to Rs 1,00,000 on a new device isn’t always feasible,” stated Manocha while giving us a tour of the facility. iPhones presently comprise the majority of this share painting an even clearer picture of the sheer aspirational nature of the Indian working class with the iPhone 11 being the best seller. 

Manocha gave us a comprehensive tour of the warehouse taking us through the entire process of receiving devices from vendors, Apple stores and ecommerce players, inspection, assigning bar codes to each and every device, wiping existing data, pre-quality checks, going through multiple levels of repairing (L1, L2, L3 and L4), buffing, screen repairs, vibrations tests, post quality checks, packaging to pre-dispatching. 

Procuring Devices And Tagging

This process mostly consisted of putting bags full of devices in what seemed like an unloading dock. This is followed by a round of inspection and adding a bar code to each and every product that comes to the Cashify facility. As tedious as this sounds, this step allows for each and every device to be accounted for. This is not it. Each and every component in these devices is bar-coded as well. This amount of attention to detail allows for a degree of accountability that essentially makes the entire process foolproof. 

Data Wipe And Pre Quality Check 

All devices go through a round of data wiping wherein all the data on these devices, if any, gets deleted. The devices get a clean slate and are then prepared for a pre-quality check where technicians decide whether these devices need any kind of repair or not. If the devices are in fine condition and do not require any form of tending, they are sent to retailers. The devices that do need repairing, however, are sent to different tiers of repair stations depending on the degree of repair needed. L1 being the lowest amount of repairs and L4 being the tier which handles more severe repairs. 

Vibrations Tests, Screen Repairs, Buffing And Much More

There are a multitude of tests that are run by Cashify technicians to make sure that the devices (talking about smartphones here) are in perfect condition after their repairs. We witnessed a partially automated vibration test taking place. We even witnessed how displays with minor scratches are treated. This process, although a bit primitive in nature, was extremely effective. Last but not least, we were introduced to the area where displays with serious defects are replaced. Like most of the steps in this process, this too was multi-layered. There are different elements in a smartphone display and different smartphones have different degrees of display damage. These smartphones are treated according to the kind of repairs they need. The one-size-fits-all concept doesn’t work here. 

Only after all these steps are diligently taken care of, the devices reach their final stations where they undergo post-quality checks and are finally bagged and tagged before their final dispatch. The final stage also involves making video content for each and every refurbished product to offer customers a very realistic picture of what they are buying. What impressed me here is the level of transparency Cashify is offering prospective customers to help them make properly informed decisions. 

The refurbished electronics market is developing at a rapid pace and it is led by smartphones. “I've seen the consumption pattern change in terms of the holding period of the phone or laptop. There was a time when people were changing their devices every year. Now, the cycles are longer and that stems from the fact that a lot of premium phones are getting very expensive. People now change their phones every 18 to 24 months,” explained Cashify CEO, Mandeep Manocha during our brief interaction. 

The increase in smartphone users across the country also has a role to play here. As per recent reports, India is the second-largest smartphone market by unit volume (Q3 2024). “The second biggest change is, now a lot more people have a smartphone. So, when they're buying a new one, they have an old smartphone to exchange. Seven or eight years ago, that was not the case. The acceptance of refurbished phones has gone up. You know, about two years ago, it was very difficult for us to explain to people what a refurbished phone is,” added Manocha. 

We asked the Cashify chieftain about the impact of refurbished devices on sustainability and how this market is contributing. We even talked about the underlying motivation of buyers during the purchase of refurbished products and that it being more associated with being aspirations rather than being sustainable. ‘You are right from the perspective that it's not at the top of the priority list but it has started playing out in people's minds. Sustainable choices are something that people are seeking out,” stated Manocha. “So yes, affordability and aspiration are the top pillars which move people's decisions but if you add a layer of sustainability, it becomes more attractive,” he added. 

With the increasing penetration of smartphones in urban as well as rural India and with increasing expendable income, it is no wonder that the recommerce market is witnessing growth. However, as per experts, this growth is predicted to slow down in the 2024-2026 period. However, Cashify CEO’s answer to our question about headwinds in the refurbished gadgets business stated otherwise. “I don't see anything right now. It's a market which is going to grow significantly from here. I don't see any major challenge coming which will put a stop to what we are building,” said Manocha. 

This visit also led us to confirm that the implementation of technologies like AI on a grassroots level is still a distant dream. While there are companies that have successfully implemented AI for streamlining processes, businesses in the recommerce sector are yet to fully utilize AI and automation. The electronics recommerce business in India is gradually maturing and a majority of it is still unorganized. That being said, players like Cashify have taken the lead in identifying the gaps in the market and filling them with quality products and services. 

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