ReFit Update | Shark Tank India Season 03
ReFit founders Saket and Avneet appeared in Shark Tank India (S03E22) for raising ₹2 crores in exchange for 0.5% equity. ReFit is a refurbished smartphone brand that procures old phones, refurbishes them, and sells them with new warranties at lower prices.
The sharks were unsatisfied with the answers; the founders got a combined counteroffer from Amit, Anupam, and Vineeta. Will the founders accept the combined deal from the Sharks? Find out in the ReFit Shark Tank update.
If you don’t have time to read the whole story, here is a brief overview of what happened to the ReFit smartphone after the shark tank.
The founders came with an ask of ₹2 crore for 0.5% equity. Anupam invited Amit to this deal and offered ₹2 crores for 1% equity and ₹100 royalty on each phone until ₹4 crore is recouped.
Amit agreed to join with Anupam, but the founders were not comfortable with royalty. After a few minutes of discussion, they agreed on ₹2 crores for 1% equity and ₹70 per unit until ₹3 crores recouped. Vineeta also joined Anupam and Amit in this deal.
| Company Name | ReFit Global |
|---|---|
| Founders | Saket Saurav, Avneet Singh |
| Founded | 2017 |
| Products | Refurbished smartphones |
| Ask | ₹2 crore for 0.5% equity |
| Deal | ₹2 crore for 1% equity + 1% royalty until ₹3 crore recouped |
| Sharks | Amit Jain, Anupam Mittal, Vineeta Singh |
About Company
Saket and Avneet started ReFit in 2017, and they procure exchanged smartphones from Amazon, Flipkart, and other offline stores.
After checking each phone on 47 parameters through an in-house diagnostic app, they sell refurbished devices with new warranties at a discounted price.
The company is bootstrapped and sold over 15 lakh phones till August 2023 and came on Shark Tank to raise ₹2 crores at the valuation of ₹400 crores.
In the financial year 2022-23, ReFit’s annual revenue was ₹187 crores with a gross margin of 14%. The average selling price of each phone is around ₹7000.
In August 2023 only, their sale was ₹35 crores, and net profit was around ₹90 to ₹95 lakh.
The company recently launched its online website, listing many refurbished devices from various brands.
ReFit Global Shark Tank Pitch and Updates
The founders started their pitch by wearing cardboard banners of new and refurbished smartphones. Their conversation represented that ReFit refurbished phones are as good as new ones and come with a warranty.
After the pitch, both founders shared the market size of refurbished devices and their revenue details.
Namita wanted to know about competitors, and Amit Jain said Cashify is the biggest brand in the refurbished market.
Namita asked, “What is the market share of Cashify in comparison to your brand”?
Founders said, “Cashify business is 3 times bigger than ours”.
After that, sharks wanted to know revenue numbers.
Founders said, “Our sales were 187 crores in the financial year 2022-23, and August 2023 (last month) sales were ₹35 crores. Our gross margin is 14%, and the average order value is ₹7000. We are already profitable, and August 2023 net profit was around ₹90 to ₹95 lakh”.
Anupam asked, “Have you raised any funding”? To that, Avneet said, “No! We haven’t raised any funding; ReFit is totally bootstrapped”.
Aman and Vineeta asked about their EBITDA and PAT (profit after tax), and the founders looked a little confused.
Due to confusion in numbers, Aman and Namita decided to go out of this deal.
Vineeta asked about their future plans, “Do you guys only stick to smartphones or also expand to other gadgets”?
Avneet said, “We will focus on smartphones only because the market size is very large”.
After a few minutes of discussions, Anupam Mittal came up with an offer.
Anupam said, “I think you know the numbers, but you’re a little bit confused here. Then he gave an offer and invited Amit to join. He asked for 1% equity with ₹100 rupee royalty until ₹4 crores is recouped and Amit joined.”
After Anupam, Vineeta also gave an offer of ₹2 crores with 1.5% royalty until ₹4 crores recovered, but she matched the original ask of equity, i.e. 0.5%.
The founders were uncomfortable with the royalty part, so Saket asked to leave the royalty aside and take 1% equity.
But, no sharks agreed to invest without royalty.
After that, Amit Jain countered, “Alright, we shall invest ₹2 crores for 1% equity and ₹70 royalty per unit until ₹3 crores are recovered.” and the founders agreed on this.
Now, ReFit has a deal of ₹2 crores for 1% equity and ₹70 royalty per unit (i.e. 1% of the average selling price) until ₹3 crores are recouped.
More Brands from Shark Tank India (Season 03):
Conclusion
ReFit Global (India’s third-largest refurbished smartphone seller) got an investment in Shark Tank India. Amit Jain, Anupam Mittal, and Vineeta Singh together came in the deal of ₹2 crores for 1% equity and 1% royalty per unit till ₹3 crores are recovered. As of February 2024, ReFit is doing great business, and they have a backup of three experienced sharks.
