This startup wants to make your iPhone 17 and S25 Ultra affordable with a new ‘smart ‘ownership’ model

“If you are buying a product today, you typically pay 100 per cent of its value upfront. Now, maybe a year or two down the line, if you stop using it, there’s still a left out value in that product. What we have done is build a proprietary model that predicts the lifecycle value of a product. This model works seamlessly with existing financing instruments, whether it’s a credit card or our own lending ecosystem,” said Jayant Jha, Founder & CEO of BytePe, explaining the rationale behind India’s first subscription-based smartphone service.

Jayant Jha, Founder & CEO of BytePe. (Image: BytePe)

“As a consumer, when you visit our platform and select a product, we curate a customised EMI structure or financing model based on your preferences. Typically, our financing structures are about 40–50 per cent more affordable than standard EMI options, making the product much more accessible, reduces pressure on your wallet, and ultimately helps you upgrade your lifestyle,” he added.

Launched in September, BytePe was founded by Jha, who previously served as the Senior Director of the Recommerce unit at Walmart’s Flipkart. He was also the co-founder and CEO of Yaantra, which was acquired by the e-commerce giant in 2022.

“Affordability is still not solved,” Jha said in an interview to indianexpress.com, adding that the cost of owning premium smartphones in India remains high despite the popularity of affordability schemes such as no-cost EMIs and trade-in offers. For Jha, the affordability aspect of high-end smartphones represents a much larger opportunity – one he understands well, having worked at Flipkart and from his prior experience as CEO of Yantra, where he gained deep insights into calculating product lifecycle value. “We are not a smartphone rental service,” clarified Jha, categorising BytePe as a platform for smart ownership.

Jha emphasised the need to solve the affordability challenge for premium smartphones through BytePe, which allows consumers to pay only for the value they use. The model offers flexibility and consumers can exchange or upgrade their devices at any time. They also have the option to eventually own the product or return it after a certain period, with EMI costs reduced by up to 55 per cent. Jha further added that BytePe’s model is integrated seamlessly with existing financing instruments such as credit cards and the broader lending ecosystem.

What BytePe, according to Jha, does is make those EMIs more affordable and give you an option to exchange or upgrade the phone whenever you feel like it. According to him, 70 to 80 per cent of the consumption of premium products are happening in India is done through EMIs.

BytePe aims to reduce the cost of EMIs even further by offering options to upgrade or retain smartphones. (Image: BytePe)

“If you walk into a Croma store and want to buy the iPhone 17, you’ll most likely opt for a 12-month EMI plan, where you end up paying around Rs 7,400 per month and you own the device. However, with BytePe, we offer you an EMI option of just Rs 3,899 per month. After 12 months, you can decide whether you want to return the device and upgrade to the next iPhone when it launches, or continue using the current one.

If you choose to return the device, we will come to you and collect it. If you decide to keep it, you can continue paying Rs 3,500 per month. You also have the option, say after 12 months, if you wish to retain the device and don’t want to return it, you can pay the remaining balance, typically another 12 months of Rs 3,500 and keep the device permanently. In both cases, you retain ownership. The key difference is that your Rs 7,400 EMI is effectively reduced by approximately 55 per cent, allowing you to pay just Rs 3,500 a month for the iPhone 17,” Jha explained.

In the future, Jha said he plans to introduce a two-year plan, where the smartphone upgrade cycle would range from 18 to 24 months, offering savings of up to 45 per cent to consumers. “We are adding a smart ownership model. It’s not rental, it’s not leasing – you are simply owning it smarter, at a fraction of the cost.” Each smartphone offered on the platform comes with 100 per cent damage protection in addition to the brand warranty.

Brands like Apple and Samsung are going all-in on affordability options to drive sales of their high-end smartphones in India. Perhaps the two biggest players in the premium flagship smartphone space.

“I don’t think they are reluctant,” Jha said when asked what is stopping top smartphone brands from introducing a similar selling model to what BytePe has launched. “What this business ultimately requires is stitching everything together. When you sell to a consumer, underwriting is involved and you need a financing instrument to underwrite the customer. Another challenge is what brands would do with the products once they come back. I believe the secondary ecosystem, where you guarantee the upfront value, is a space that requires a lot of capability. That capability is what we bring to the table, which is why we are able to successfully integrate all the pieces.”

BytePe currently offers only high-end smartphones from brands like Apple and Samsung, but over time, the platform plans to expand its product categories to include accessories, premium watches from Seiko, bags, and more. Jha indicated that his startup may work closely with some of these brands, though he did not name any. For example, the latest iPhone 17 is available on BytePe for Rs 3,899 a month, the iPhone 16 for Rs 2,787, and the AirPods 4 for Rs 877 a month.

BytePe, he believes, will succeed as Indian consumers’ behavior shifts towards mass premium and flagship smartphones. However, Jha isn’t alone in trying to make premium smartphones more affordable through unique business models. Everphone in Germany sells Apple iPhones, Samsung Galaxy phones, Google Pixels, and other tablets “as a service.” In the UK, Raylo offers smartphone subscriptions, charging consumers a monthly fee to lease new or refurbished SIM-free devices.

“These players may operate similarly to us, but their backend structures are different. For example, Raylo’s model does not offer ownership, whereas our model gives you the choice of ownership. The European market has a different consumer dynamic, while the Indian market is more focused on affordability,” Jha said.

Jha mentioned that since the beta launch of the platform in September, the company is currently serving 15,000 PIN codes. When asked about the response from smaller towns in India, he said it’s too early to comment on regional behavior, as more data will be needed over the next few months. The service is currently web-based, with an app launch planned for this quarter.

Jha indicated that after smartphones, his next big bet for a product category may be gaming, with other categories expected to follow in the next financial year.

BytePe has 30–35 person team based in Bangalore and Delhi.