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Budding is a type of asexual reproduction in which a new organism develops from an outgrowth or bud due to cell division at one particular site. The small bulb-like projection coming out from the yeast cell is called a bud. Since the reproduction is asexual, the newly created organism is a clone and excepting mutations is genetically identical to the parent organism.
Organisms such as hydra use regenerative cells for reproduction in the process of budding.
In hydra, a bud develops as an outgrowth due to repeated cell division at one specific site. These buds develop into tiny individuals and, when fully mature, detach from the parent body and become new independent individuals.
Internal budding or endodyogeny is a process of asexual reproduction, favored by parasites such as Toxoplasma gondii. It involves an unusual process in which two daughter cells are produced inside a mother cell, which is then consumed by the offspring prior to their separation.
Endopolygeny is the division into several organisms at once by internal budding.