Do you use a smartphone? Well, of course, right? But do you use refurbished smartphones? Some people might not want to answer this question, like they feel guilty about buying and using a pre-owned phone or laptop because of the perception that refurbished or second-hand smartphones are no good or old. Can. Similarly, ask someone if they are using a refurbished phone and they might find you strange because often we consider our phones as status symbols. There is a kind of taboo associated with second-hand phones, although in our families we often give the phones to each other whenever we get new phones. It’s this taboo that companies like Cashify are hoping to remove.

And they’re probably succeeding. The market of refurbished phones is growing in India. According to a report by the Indian Cellular and Electronics Association, the Indian refurbished smartphone market reached 20 million units in 2020. And by 2026, the report says – although it does not specify how many phones the size of the Indian refurbished market will reach. $10 billion.

Despite the taboo, refurbished phones and laptops have their appeal – they have a relatively low price and good value for money. However, concerns are mainly about the quality of the old device, its working condition and privacy. And the issue of privacy is not just a concern for the buyer, but also for the seller. Due to this, people often hesitate in buying or trading their old phone.

Now companies like Cashify are working to change that. They have developed what they call “a safe, standardized process” through which old phones go through before they can be put on sale again. Additionally, this same process assures anyone selling their old phone that their device will not be misused.

In a conversation with India Today Tech, Cashify co-founder and CEO Mandeep Manocha revealed that the company initially started as a waste management business in 2009 and eventually entered the refurbished device market. The change was driven by the realization that “extending the life of a product was actually a better idea than recycling it.”

Manocha says, “A large population of India wants good quality products that they cannot buy new. So, we saw an opportunity to bridge this gap by buying used appliances from consumers, adding value and reselling them.”

Reselling devices like smartphones is also in line with green initiatives – reduce e-waste, keep the environment clean – the company initially struggled to get enough devices to refurbish and sell. In a country like India, where news about data leaks and misuse of technology is common, people are hesitant to resell their smartphones due to the amount of personal and financial data stored on them. Even when a factory reset option is available, people remain cautious. To address this, Cashify assured customers from the beginning that all devices would undergo secure data wiping before being resold, Manocha says.

“This concern over data security is a major reason people hesitate to sell their devices. Many people believe that data can be recovered, but this is not true with data being erased on multiple levels While there are military-grade solutions that can take up to two hours to wipe a phone, we use a two- or three-pass data wipe technique, which is sufficient for 99.99 percent of cases.” Manocha says.

Once a device reaches Cashify’s factory, the refurbishing process begins. Here, thousands of smartphones from different brands undergo strict quality checks. Each device first undergoes a data wipe, then is repaired using genuine parts sourced from manufacturers to ensure quality.

“Our market mainly consists of people aged 20 to 35, such as first-time workers, college students and low-wage earners who are aspirational,” explains Manocha. “We are expanding into tier-two and tier-three cities and opening stores in smaller towns. Many customers from these regions are now accessing our e-commerce platform, which is an encouraging trend.”

But what about warranty? While smartphone manufacturers give a certain warranty, say 2 years or 3 years, manufacturers do not extend it on refurbished phones. Instead, the warranty comes from Cashify. Manocha says that depending on how old the phone is, the company gives a warranty of 6 months to one year on the refurbished phones it sells.

Additionally, the company takes steps to reduce and avoid security issues. He wants to make sure he is not buying a stolen phone. Or a phone whose original owner cannot be traced in a law and order situation. Manocha says, “To ensure accountability, Cashify performs thorough identity checks when purchasing a device, including Aadhaar verification and capturing ID proof at the point of sale, thereby preventing stolen devices from entering their system. Can be stopped.”