HyperXchange is India’s fastest growing brand for refurbished electronics. Established three years ago in 2016, we are disrupting the business by turning its key value drivers on its head:
1) We are turning a predominantly inventory-led business into an asset-light model – leading to non-linear growth
2) We are transforming a cash-&-carry grey market into a credit-based structured economy – helping introduce transparency, trust and institutional funding
3) We are helping to realign a localized, offline business in top metros into a massively distributed, omnichannel powerhouse across India’s Tier 1 and Tier 2 centers – unlocking the potential of recommerce across the largest consumer population in the world.
The success of the hyperXchange model is underlined by our scorching growth. Over the past 3 years, our business scaled 12x, margins improved 7x, topline grew 108x, and usage ballooned by over 400x.
India’s preowned electronics market is the largest in the world – it is projected to explode to $25bn at a 40% CAGR growth rate. However, it is an underserved space, with the grey market dominating over 95% of the current supply.
Grey market-led economy means poor customer experience – both from the perspective of trust (low or no warranty or after sales service) and ease (purchase process is complicated, availability is unpredictable, distribution is localized to certain areas in select metro cities).
An unstructured market also means players do not have access to institutional funding and credit, and would need to rely heavily on cash-&-carry transactions. This, in turn, means that most companies dealing in refurbished electronics follow an inventory-led asset-heavy model – which makes growth slow and difficult.
It’s a challenge from the perspective of consumers who want to sell their phones, too. Electronics today, and specifically mobile phones (which constitute close to 80% of the refurbished electronics business in India), have short product cycles. Which means they get obsolete fast and their sell value falls quickly. In this situation, sellers would prefer a trusted, automated benchmark of prices at which they can sell their used products. Unfortunately, no such benchmark or automation exists in the industry today.
The hyperXchange solution
We observed the market and created our unique tech-led, asset-light strategy to address both the demand-side and supply-side challenges:
Stellar Leadership team
hyperXchange’s team has a great mix of experience, growth-hacking skills & fresh energy. They have scaled several multi-billion dollar projects, turned around companies and created marquee brands.
Leading institutions that incubated hyperXchange:
IIM Calcutta’s Innovation Park – India’s leading business school and startup incubator, approved by the Department of Science & Technology.
Microsoft’s Bizspark program meant to showcase and support promising startups
Who are we looking for?
hyperXchange is looking for franchise partners across Tier 1 and Tier 2 locations with:
- A stellar background in scaling businesses in the past
- Experience of retail
- Basic understanding of consumer electronics business
- Interest in technology
- Vision to think big
- Courage to try new things
- Ability to grow fast
We will help our partners scale retail hyperXperience locations, while our unique omnichannel model yields committed returns from the very first month of operations.
Operations Commenced On 2016
Franchise Commenced On 2019
Investment INR 10lac - 20lac
Franchise/Brand Fee INR 300000
Royalty/Commission 10 %
Delhi, Haryana, Himachal Pradesh, Jammu and Kashmir, Punjab, Uttaranchal, Uttar Pradesh
Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana
Assam, Meghalaya, Mizoram, Tripura, Arunachal Pradesh, Manipur, Nagaland, West Bengal, Sikkim, Odisha
Gujarat, Rajasthan, Maharashtra, Goa
Chhattisgarh, Madhya Pradesh, Bihar, Jharkhand
Andaman and Nicobar, Pondicherry, Chandigarh, Lakshadweep, Daman and Diu
Exclusive territorial rights to a unit franchisee Yes
Performance guarantee to Unit Franchise Yes
Anticipated percentage return on investment 207 %
Likely pay back period of capital for a Unit Franchise 1-6 Months
Other investment requirements Apart from nominal franchise fees, unit franchise would need to invest in shop infrastructure and stock inventory
Type of property required for this franchise opportunity Commercial
Floor area requirement 150 - 1000 Sq.ft
Preferred location of unit franchise outlet High Street
Detailed operating manuals for franchisees Yes
Franchisee training location At Franchisee location or at Franchisor offices
Is field assistance available for franchisee ? Yes
Expert guidance from Head Office to franchisee in opening the franchise Yes
Current IT systems will be included in the franchise Yes
Do you have a standard franchise agreement? Yes
How long is the franchise term for? 3-No of years Years
Is the term renewable? Yes