NewJaisa Technologies Limited is a full-stack, technology-driven **Direct-to-Consumer (D2C)** company specializing in the refurbishment and sale of IT electronics. Operating exclusively in the Indian market, the company manages an end-to-end reverse supply chain—procuring used assets from corporates, refurbishing them at its centralized facility, and selling them to retail and enterprise customers. The company targets a **$2.5 billion** market in India, where PC penetration currently stands at only **13%**. --- ### **Strategic Pivot: From Marketplace Dependency to Multi-Channel Ecosystem** Following a significant shift in **February-March 2025**, when **Amazon** (which previously contributed **60%** of revenue) discontinued refurbished product sales in India, NewJaisa successfully pivoted to a diversified multi-channel model. The company is currently in a "pilot and prove" phase, aiming for a balanced **33%-33%-33%** revenue split between e-commerce marketplaces, its own online assets, and offline channels. | Channel | Description | Performance & Strategy | |:---|:---|:---| | **D2C (NewJaisa.com)** | Direct sales via the company website. | **100% growth** in Q1 FY26; contributes **~60%** of online sales; monthly run rate reached **INR 2.5 Cr+**. | | **Enterprise & SME** | B2B sales, leasing, and Device-as-a-Service (**DaaS**). | Signed **80+ new clients**; includes deals exceeding **INR 1 Crore**; focus on converting CapEx to OpEx. | | **Education** | Refurbished hardware for schools/colleges. | Dedicated business head appointed; closed deals with **2 engineering colleges** and **5 schools**. | | **Retail & Distribution** | Partnerships with modern trade and franchises. | Live in **4 stores** of a southern retail chain; targeting **500+ locations** and **15+ franchises** by FY26. | --- ### **Operational Infrastructure & Production Capacity** The company operates a **52,000 sq. ft.** state-of-the-art facility in **Bangalore**, divided into specialized zones: **45,000 sq. ft.** for laptops and **8,000 sq. ft.** for desktops and recycling. * **Production Metrics:** Current capacity is **400 units per day**, capable of supporting **INR 250 Crore** in annual revenue. While utilization dropped to **~40%** following the Amazon exit, the company targets a return to full utilization within 12 months. * **Quality Assurance:** Implements **50+** detailed refurbishment parameters and an automated quality check app. * **Workforce Management:** To align with current scale and manage burn rates, the company rationalized its headcount by **25%** in a single quarter, following a peak expansion in FY24. * **Productivity Targets:** Aiming to increase laptop refurbishment productivity per employee from **1.0x to 2.5x**. --- ### **Product Portfolio & Market Positioning** NewJaisa focuses on the **Budget (INR 10k-15k)** and **Mid-range (INR 15k-25k)** segments, which represent **70%** of the Indian refurbished market. * **Core Brands:** Dell, HP, Lenovo, Apple, and ASUS. * **Product Categories:** * **Laptops:** Business, Premium, and Chromebooks (Dell Latitude, ThinkPad, MacBook Air/Pro). * **Desktops & Monitors:** Lenovo ThinkCentre, ASUS Chromebox, and professional displays. * **New Categories:** Recently onboarded **Tablets**; long-term plans include **Mobility, ACs, and IT Accessories**. * **Value Add:** All devices include **Quick Heal Antivirus** pre-installed and warranties ranging from **6 to 18 months**. * **Margin Strategy:** While Windows-based products drive volume, the **Apple MacBook** segment offers significantly higher margins. --- ### **Supply Chain, Sourcing & Compliance** The company is shifting toward a **Value-Driven Sourcing** model to improve margins and ensure consistent quality. * **Direct Sourcing Target:** Aiming to source **80%** of materials directly from corporate entities (up from **25%**), reducing reliance on third-party recyclers. * **Corporate Suppliers:** Current partners include **IBM, Tech Mahindra, and Hyundai**. * **Regulatory Assets:** * **E-Waste Management License:** Enables direct procurement from large corporates. * **R2 Standard v3:** Provisional approval for sustainable electronics reuse (a prerequisite for MNC contracts). * **ISO Certifications:** ISO 9001 (Quality), 14001 (Environment), and 45001 (Health & Safety). --- ### **Financial Performance & Cost Structure** FY25 was a year of consolidation. While FY24 saw **40%** revenue growth, FY25 growth slowed to **~5%** due to the marketplace transition. **Key Financial Indicators:** | Metric | FY24 (Actual) | FY25 (Est.) | Long-term Target | |:---|:---|:---|:---| | **Gross Margin** | **~47%** | **~42%** | **40%** | | **PAT Margin** | **10.23%** | **~1%** | **12%** | | **Inventory Turnover** | **2.0** | **3.0** | - | | **Working Capital Cycle** | - | - | **~80 Days** | * **Inventory Adjustments:** A conservative **INR 2.5 Cr** write-off was taken for aged spares (DDR3/DDR4). Current stock focuses on **6th Gen and above** to ensure **Windows 11** compatibility. * **Marketing Investment:** Allocating **4% to 5% of top-line** to brand building, with BTL costs currently at **13%-14%** to drive direct traffic. * **Liquidity:** Maintains a cash balance of **INR 8–8.5 Cr** (as of July 2025) and an unutilized **INR 15 Cr OD limit**. * **Capital Raise:** Successfully raised **INR 30 crore** via preferential allotment in late 2024 for manufacturing and IT scaling. --- ### **Innovation & Digital Engagement** * **Financing Solutions:** Collaboration with **NBFCs (including Bajaj Finance)** to offer EMI options for retail customers and invoice discounting for SMEs. * **High-Touch Sales:** Features **assisted video calls** for product inspections, contributing to a base of **1 million active users** and **50k+ social followers**. * **Strategic Projects:** Executing a **3,000-unit** project in Himachal Pradesh and developing hardware-content integrated solutions for the education sector. --- ### **Risk Factors & Internal Controls** Investors should note the following challenges associated with the company's transition and operational model: * **Revenue Concentration:** The transition from Amazon-fulfillment to a ready-to-ship model caused a **31.05%** revenue decline in H1 FY26. * **Internal Control Weaknesses:** * **Reporting Discrepancies:** An **INR 11.45 crore** variance was noted between stock reported to banks and book records as of March 2025. * **ERP Errors:** Technical "bugs" in spare parts pricing led to data reporting delays and valuation inaccuracies. * **Compliance:** Failure to provide for **gratuity liability** (AS 15) in recent periods due to lack of actuarial valuation. * **Market Risks:** Rapid technological obsolescence (e.g., shift to **DDR5/AI-compliant RAM**) and intense competition from both OEMs and unorganized players. * **Legal:** An **INR 90 lakh** inventory dispute is currently under arbitration regarding alleged theft by a logistics partner. * **Promoter Activity:** A promoter sold **1,20,000 shares (0.34%)** in July 2025 to meet personal financial exigencies.