The technology landscape in Bangladesh, like many emerging markets, is characterized by a paradox: a growing demand for devices alongside a significant amount of electronic waste and disparity in access due to costs and affordability.
ExchangeKori, a company founded by Rasel Ahmed and M Ahsan Habib, is attempting to address both sides of this equation by building a business around the reuse, refurbishment, and recycling of used electronics, primarily laptops. At first glance, it's just another startup, but look closer, and you'll find a story that is equal parts business savvy and a genuine desire to bridge the digital divide in Bangladesh. ExchangeKori has carved a space in the market by dealing in the detritus of the digital age: used and broken laptops. This might seem like a less-than-glamorous endeavor, but in a country where financial constraints often limit access to technology, ExchangeKori has found a market eager for affordable options.
The market for used laptops in Bangladesh is significant. According to Rasel, the country is awash with used electronics and access to laptops and technology products remains a barrier for many people. While there are thousands of small shops all over the country that deal in refurbished goods, most are small-scale operations, without any kind of online presence or customer service system. ExchangeKori aims to bring a level of professionalism and organization to the market, leveraging the power of e-commerce to reach customers all over the country.
The company’s target market includes students, freelancers, and many corporates who have a limited budget. These people cannot afford new devices but rely on technology for their education and work. There are a large number of people in this category, especially in semi-urban and rural areas, and ExchangeKori is seeking to address a need that has been previously overlooked.
ExchangeKori Limited originated from SystemEye Technologies Limited's transformative "Shadheen Offer" campaign in 2016, which facilitated laptop and desktop exchanges and gained national recognition. To elevate the initiative, Rasel Ahmed and M Ahsan Habib partnered to establish ExchangeKori as an independent company. Today, ExchangeKori is a standalone platform, offering computer exchanges, upgrades, and affordable access to devices and accessories.
In a way, the origin of ExchangeKori involves the convergence of two individuals each with a distinct background but with complementary skills and a shared vision for a more organized and sustainable electronics market in Bangladesh.
M Ahsan Habib, a Bangladeshi expatriate with an impressive background in finance and banking, having held key roles at American Express Bank and as a top executive at ONE Bank, moved to Australia for family reasons. However, his deep connection to his homeland and desire to contribute meaningfully inspired him to return to Bangladesh. Determined to make a difference, he founded ExchangeKori Limited—a pioneering initiative focused on PC recycling. This program not only reduces millions in technology expenses for users but also significantly curtails e-waste, fostering sustainability and making technology more accessible for all, especially in underserved areas.
The other, Rasel Ahmed, is a seasoned veteran of the tech industry, with over fifteen years of experience in the laptop market, and was already running a small side business focused on computer recycling. It was Rasel who conceived of the idea that would become ExchangeKori. He has worked in the computer hardware industry since 2009 and has experience with selling and servicing laptops. He started a customized online portal called exchangekori.com in June/July of 2023, where customers could upload details and photos of their old laptops to get a price quote. While the business saw excellent initial traction, he realized that to grow the business, he needed more investment.
The two men connected through a mutual acquaintance, a relative of Rasel's, and soon realized they shared a vision for a business that was both profitable and socially responsible. This personal connection was a key factor, as Habib stated: "When his cousin certified something to me, I did not give it a second thought because his cousin is very close to me". This existing trust helped the two come together to start ExchangeKori.
The two met physically in December of 2023 and finalized the plans to work together. They had several conversations before meeting in person to discuss the idea, and Habib was impressed by the potential of the market.
The initial idea was to create a platform for buying and selling used laptops, but it quickly evolved to include refurbishment, recycling, and a focus on serving the needs of a budget-conscious market. They were motivated by both profit and a desire to help underserved communities access affordable technology.
Mr. Habib brought the investment capital, while Mr. Rasel provided the market expertise and the nuts-and-bolts understanding of the used electronics trade. It was an unlikely pairing, perhaps, but one that has proven remarkably effective.
The company initially focused on buying used laptops, refurbishing them, and selling them to a budget-conscious market, primarily through its sales channel, Device Mama, which had an existing organic reach.
As the business evolved, ExchangeKori started offering exchange programs to allow its customers to upgrade their devices. The company also realized the need to build trust and offer a 50-day replacement guarantee, as well as a two-year free service warranty on all its products.
Today, ExchangeKori has a team of 19 employees and is focused primarily on laptops. It currently runs two physical outlets in Dhaka.
The company manages a complex process that spans from the initial evaluation of a device to the final sale. This involves dedicated teams handling evaluation, repair, marketing, and sales. It sources devices from across Bangladesh and currently has a customer base that is 60% in Dhaka and 40% outside the city.
The average selling price of ExchangeKori products is about 20,000 taka, though it has products available in the range of 4,000 to 40,000 taka.
The company is also handling a significant volume of devices. While the number fluctuates, a significant portion of the laptops they receive (around 90%) are refurbished and sold while the remainder are used for parts.
ExchangeKori’s core offering centers around the buying, refurbishing, and selling of used laptops. We can break down what ExchangeKori allows customers to do in the following ways:
Sell used laptops: Customers can easily list their devices online, providing details and photos for a price quote. This removes the friction associated with informal sales and provides an easy way for people to sell their used devices.
Exchange used laptops: Customers can trade in their old laptops for newer or upgraded models.
Buy refurbished laptops: The company offers a variety of refurbished laptops at various price points, catering to different budget levels.
Access to new laptops: ExchangeKori also provides new laptops through partnerships with authorized distributors. The company is also moving towards selling spare parts for laptops, including screens and hard drives, which it sources from broken devices. This is part of its longer-term plan to minimize e-waste by creating a market for parts and components.
The name, ExchangeKori, is a nod to the company's central premise: the exchange of old for new, or at least, newer. The company’s business model is predicated on creating value at multiple stages of the used device lifecycle. It sources used laptops from individual sellers through their online platform and from logistics partners in more rural areas. Each laptop is carefully evaluated, refurbished, and, if necessary, painted to look presentable.
Used laptops and desktops fall into three categories: Refurbished, Used, and Off-Lease. Refurbished devices are repaired, tested, and restored to a quality standard, often by OEMs or vendors. Used products are sold as-is, without guarantees of inspection or repairs. Off-Lease devices are returned after 2-4 years of corporate use, refurbished, and resold. All these options support the circular economy, directly benefiting developing countries like Bangladesh by reducing e-waste and making technology more accessible.
The refurbishment process by ExchangeKori Limited often involves repairing common issues such as broken batteries and keyboards. Refurbished devices are sold through its online channels, as well as through a growing reseller network. The company offers convenient payment options and home delivery services via third-party couriers.
ExchangeKori also captures value by selling used devices at prices that reflect the value added through the refurbishment and warranty process. The company makes a profit on each sale after the device is refurbished and can keep costs low by offering products with a smaller margin than a typical retailer in Bangladesh.
The business model revolves around a simple, yet ingenious, cycle:
Acquisition: Customers begin by visiting ExchangeKori's online portal, where they can list their old laptops for sale. They provide details like the brand, model, configuration, and physical condition and upload photos. This information is then reviewed by ExchangeKori's team, who provide an initial price offer via SMS or other channels.
Evaluation: ExchangeKori has a dedicated team that physically assesses each laptop. This is crucial because, as Rasel explains, customers often don't know the full extent of their devices' issues, or sometimes they may simply misrepresent the condition to get a higher price.
Refurbishment: Once a laptop is acquired, it enters the workshop, where it is given a new lease on life. Common repairs include replacing worn-out batteries, and keyboards, and sometimes, upgrading hard drives. The company also does cosmetic work, often recoloring the devices to make them more appealing to potential buyers.
Sales: Once the laptop is refurbished it is sold on the Device Mama online sales platform, a channel that has been active since 2016, which gives ExchangeKori an existing market reach. The company has also established a network of resellers around the country who take the refurbished devices to their local markets.
Recycling: Not every laptop can be saved. Inevitably, some are too damaged or too outdated to be worth refurbishing. But even these devices serve a purpose. They are dismantled, and usable parts are sold to repair shops, while the rest is responsibly recycled. This reduces e-waste and is more environmentally sustainable than simply throwing the old devices away.
This process, which ExchangeKori calls the "circular economy" approach, is not only good for the environment, but it is also a sensible business proposition.
ExchangeKori has several competitive advantages that set it apart from other players in the used electronics market in Bangladesh. These advantages can be grouped into the following key areas:
Convenience and Accessibility: The company aims to make it easy for both sellers and buyers to transact in the used electronics market. For sellers, ExchangeKori provides an online platform where they can list their devices, get a price quote, and arrange for pickup.
As Habib puts it, “When he (a customer) sees a portal that just by entering the portal, giving two laptop pictures and configurations, the laptop is sold immediately after communicating on the phone, he is not waiting to tell anyone." This is a far cry from the traditional hassle of dealing with individual buyers in person.
For buyers, ExchangeKori offers home delivery, various payment options, and a warranty, addressing key pain points for consumers in the used electronics space. The company is also building relationships with logistics providers to extend its reach even to the most rural areas of Bangladesh.
Value, Quality, and Trust: ExchangeKori is not just about convenience, but also about offering value to both sides of the transaction. For sellers, the company claims to offer a fair price for used devices, often better than what they might receive from smaller shops. For buyers, the company offers access to affordable laptops that have been refurbished and come with a warranty. "We are giving a 50-day replacement guarantee and a two-year service".
The company has a structured process for evaluating, refurbishing, and, when needed, painting the used devices to ensure they are in good working condition before being sold. This process adds value to the used product and allows ExchangeKori to sell it for a higher price than a typical used electronics dealer.
The 50-day full replacement guarantee and a two-year free service warranty on all products help build trust with customers who may be wary of buying used electronics and is a key differentiator for the company.
Sustainability: At its core, ExchangeKori is trying to contribute to a more circular economy. By buying used laptops and refurbishing them, the company is extending the life cycle of these devices and reducing electronic waste. The company also plans to implement a recycling process for unusable parts.
As Rasel explains, “We will recycle properly. We will separate the plastic, separate the copper, and then the IC chips of the circuit will be separated. We will separate the copper separately.”
This focus on sustainability not only addresses environmental concerns but also gives ExchangeKori a unique selling point in the marketplace.
Unlike many smaller retailers, ExchangeKori has a comprehensive plan to recycle unusable devices and spare parts. The company aims to extract value from every component and ensure that no e-waste ends up in landfills. As Rasel notes: "We are taking the broken parts and also making them usable". The company is developing a market for used spare parts, which will allow it to offer these components to repair shops and individuals at a lower cost than new parts. This provides customers with affordable options for repairing their devices.
Large Inventory: ExchangeKori can offer a larger variety of used laptops compared to small retailers, who may only have a few units at a time. The company's operational structure and online presence give it the ability to scale and handle large volumes of used devices.
Affordable Pricing: ExchangeKori caters to the needs of students, freelancers, and low-income individuals who are looking for affordable laptops. The company offers devices at lower prices than new models and is mindful of price sensitivity in the market. As such, a large portion of its sales are in the 15,000 - 30,000 taka range.
Integration of Services: ExchangeKori integrates sourcing, evaluation, refurbishment, sales, and customer service within one business. This is different from many small players in the market who only focus on one or two of these functions.
Honest Business Practices: ExchangeKori prioritizes operating with integrity and honesty. As a result, the company is building a reputation for fair pricing and reliable service.
By combining convenience, quality, sustainability, and a customer-centric approach, ExchangeKori is positioning itself as a leader in the used electronics market in Bangladesh. These competitive advantages allow the company to capture a larger share of the market, serve a wider customer base, and promote the growth of the circular economy in the country
For Habib and Rasel, ExchangeKori is about more than just making money. It's about making a positive impact on society. Mr. Habib explained that when they were working on the business model for the company they wanted the company to address social issues, and that they had a "good feeling" about helping underserved communities to fulfill their dreams through the use of technology.
They are particularly proud of the fact that they are helping people get access to technology who would not otherwise be able to afford it. The company makes a point of selling its refurbished laptops at a price point that is accessible to low-income families, students and even companies who would like to save on these devices.
Mr. Rasel noted that some parents spend a significant amount of money to get their children a laptop for school and that ExchangeKori plays a role in helping such parents to be able to fulfill their children's educational dreams.
They also see themselves as part of a larger movement towards sustainable consumption and environmental responsibility. The recycling of used electronic goods, they believe, is an important step in addressing the growing problem of e-waste. They are committed to running their business with integrity, focusing on honesty and transparency in their dealings with customers.
Of course, ExchangeKori is not without its challenges. As with any start-up, there have been obstacles to overcome. One of the main issues the company has faced is managing customer expectations. Because many of the customers selling old devices do not always know or tell the truth about the state of their devices, the company has to do a very thorough inspection of each laptop to make sure that they are offering a fair price and not losing money.
Moreover, in a market characterized by informal transactions, building trust is crucial. The 50-day replacement guarantee and the two-year service warranty are key elements of its approach. The company is also working to ensure that customers receive accurate information about the condition of the devices they purchase.
The market is also highly competitive, with many small-scale retailers vying for a piece of the pie. ExchangeKori has to compete with other retailers who can sell used electronics at lower prices because they don't have the same operating costs. The company also will need to compete with the new product market, and they are addressing that by selling new and refurbished products as well as offering an exchange program to allow their customers to upgrade from used to new laptops.
Scaling up the operation to handle the collection and delivery of devices across the country poses significant logistical challenges, particularly in the more rural areas. The company is working to address this through partnerships with courier services and the development of a reseller network.
Finally, a key challenge for the company is that many potential customers are unaware of the value of their old devices or the option of buying used laptops. ExchangeKori will need to ramp up its marketing efforts to address this.
Despite these challenges, ExchangeKori has a significant opportunity. Its focus on a circular economy model, combined with their focus on convenience and value, positions them well to disrupt the fragmented electronics market in Bangladesh. Its commitment to customer satisfaction is also a key differentiator.
The co-founders believe that the value of their services, like the warranty and delivery, will set them apart from the rest of the pack. They have been working with a chartered accountant to help them manage their finances to remain competitive and profitable.
The company is also planning on expanding its services. It is working on a program to offer new laptops through partnerships with other retailers. And the company is setting up a new portal where customers can buy components to repair their own devices. This, they hope, will further reduce e-waste and also serve another need in the used electronics market.
In the short term, ExchangeKori plans to expand its reach throughout Bangladesh by using courier partners to handle pick-up and delivery in all areas of the country. The company intends to develop a larger reseller network to help expand the availability of its products while minimizing its own distribution costs. The company is working with existing businesses in smaller cities and towns to sell its products. In addition to refurbished products, the company plans to start selling new laptops. ExchangeKori will continue to develop its business in spare parts and improve its ability to recycle e-waste by developing relationships with companies that can reuse plastics, metals, and other materials from discarded laptops.
The future of ExchangeKori is hard to predict. But one thing is clear: the company has managed to find a way to make a profit while addressing a real social need. The company is not just selling laptops; it is offering access to technology, creating economic opportunities, and contributing to a more sustainable future for Bangladesh. The company is trying to have a positive social impact by providing affordable technology to underserved communities, while also making strides in sustainability. As Rasel stated, “We are trying to make sure that we can serve the underprivileged people.”
ExchangeKori is playing a part in a larger, global movement, where the reuse and recycling of goods is the future. The company is looking to create a model for a business that is both socially conscious and financially viable. And that's something worth paying attention to.
Cover photo: M Ahsan Habib and Rasel Ahmed, Founders, ExchangeKori (from left to right)
