Refurbished phone market set for strong growth

New Delhi: The organised refurbished smartphone market is expected to end this calendar year with a double-digit growth in sales despite the exit of two large ecommerce platforms Amazon and Flipkart from the segment, denting sales in the first half.A robust festive season, however, helped the sector regain momentum, industry executives said. Companies have also started expanding into categories such as laptops, cameras, smartwatches, and gaming consoles to diversify revenues, they added.In the first half of 2025, both Amazon and Flipkart restructured their businesses of selling refurbished smartphones by discontinuing sales of externally-refurbished products due to high return rates, and inconsistent quality. This led to a dip in sales for companies selling refurbished handsets through the platforms. 126147462 According to Counterpoint Research, India's refurbished smartphone market grew 9% on-year in the calendar first half, sparking a shift in business models with companies such as Cashify and Control Z focusing on expanding their direct-to-consumer channels including both online and offline stores."This exit created a short-term drop in sales for ecosystem partners but opened a significant long-term vacuum in the market for organised players," said Yug Bhatia, co-founder, ControlZ, a Gurugram-based refurbished smartphone seller. "In response to these platforms leaving, we have expanded our inventory beyond the previous exclusivity with iPhones to include Android devices, witnessing clear demand for them."Revenue from direct-to-consumer channels has nearly doubled year-on-year, rebounding from a decline in the first half, while current monthly revenues have surpassed last year's figures, said Bhatia.Amazon and Flipkart's exit, however, also led to a surge in smartphone sales in the unorganised sector, he said. "Currently, the unorganised sector is booming because the organised marketplaces are inactive. But, in the next 3-6 months, the organised market will pick up as players refine their independent strategies," he said.Cashify, considered the largest organised seller of refurbished handsets, said it expects to close 2025 with a 40% surge in revenue. It also saw a 16% increase in trade-ins, helping ease constrained supply of old devices in the market. "Approximately 300,000 smartphones were sold directly to consumers via our online channel, which accounts for roughly 20% of our total devices sold," said Nakul Kumar, co-founder, Cashify. He added that the company saw a 3% volume growth in direct-to-consumer channels, with a 30-40% increase in revenues from '1,150 crore in 2024.Overall, Cashify expects to sell 2.4 million devices this year, up from 2 million in 2024. It has also started seeing an uptick in sales of premium smartphones with many buying opting for EMIs. The number of deals processed through financing options has doubled compared to last year, Kumar said. "iPhones make up 60% of sales in the online market, and overall, it is 25% of the total portfolio. MacBooks also account for 30% of laptop sales," said Kumar. "We expect to close between '150-200 crore in laptop sales this year, with a target of '350-400 crore next year."