Recommerce Startup Cashify Raises $90 Mn, Valuation Soars To $250 Mn – Inc42

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NewQuest Capital Partners, Prosus and Cashify’s present traders additionally participated on this spherical of funding

The firm plans omnichannel growth to faucet the used cell phones and devices market

Cashify CEO, Mandeep Manocha says that the corporate is focusing on profitability by subsequent 12 months

Recommerce market Cashify has raised $90 Mn in a Series E funding spherical led by NewQuest Capital Partners (“NewQuest”) and Prosus. Paramark Ventures and Cashify’s present traders — Bessemer, Blume Ventures and Olympus Capital additionally participated on this spherical of funding

In an interplay with Inc42, Cashify founder and CEO Mandeep Manocha stated that the corporate’s valuation has soared 2x on this Series E spherical in comparison with the $86 Mn valuation throughout the Series D funding spherical which was introduced in March 2021. 

In March 2021, the startup had raised $15 Mn in a Series D funding led by Olympus Capital’s clear power and sustainability arm, Asia Environmental Partners.

Founded in 2013 by Mandeep Manocha, Nakul Kumar, Amit Sethi, and Siddhant Dhingra, Cashify is a recommerce market that provides a web based platform to promote previous or used digital devices – primarily smartphones, adopted by laptops, tablets, desktops and Gaming Consoles.

Manocha knowledgeable us that the startup’s month-to-month Gross Merchandise Value (GMV) is presently pegged at INR 100 Cr, which is anticipated to double within the subsequent six months.

“We are improvising on our unit economics and expect to break even in the next 18 months,” Manocha stated.

The startup now plans to develop its offline footprints within the type of brick-and-mortar shops throughout the nation.

“The Indian consumer sentiment of being price-conscious and at the same time expecting quality purchase is what is driving the used mobile phone market in India,” Manocha informed Inc42.

In phrases of income mannequin, the startup has an in-house logistics crew which sources used/previous cell phones/devices (from clients keen to promote their objects), by enabling dwelling pick-ups with high quality checks and balances. These digital devices/ telephones are then refurbished in Cashify’s service centres after which bought each on-line and offline.

“We have been able to source a majority of the used mobile phones/ gadgets from metros, tier 1 towns, however our buyer segment for these gadgets is usually based beyond tier 1 towns where we are expanding our presence,” Cashify CEO informed Inc42.

When it involves competitors Manocha notes that the ecommerce gamers like Amazon, and Flipkart which supply enormous reductions on cell phones, devices and so on. usually are not lively in promoting used/ previous cell phones/ different devices. “We have, in fact, been able to carve a name for ourselves in the online space as a marketplace,” he added.

The funds, Manocha stated will probably be utilised for strengthening the servicing capabilities, and increasing the logistics and tech groups moreover organising extra service centres throughout India’s 51 cities. 

“While there is a large opportunity set in the recommerce space, Cashify has a clear edge as a category leader with its focus on customer experience and its data and tech-first approach to drive scale and working capital minimisation. Its leadership position and the success of the PhonePro brand are a testament to the quality of the management team and their vision for the sector. We’re excited to be a part of their journey and a part of the consumer revolution that they’re driving,” Amit Gupta, Partner and Head of Indi and Southeast Asia, NewQuest Capital Partners stated in an announcement. 

According to the consulting agency, Redseer, the used cellphone market in India is anticipated to the touch $10 Bn worth by FY26 with the general refurbished digital business rising at a CAGR of 16 per cent to succeed in $11 Bn by FY26.

The report added that the used smartphone market is seeing higher margins for retailers in comparison with the sale of recent smartphones. “In 2021 alone, India witnessed the purchase of over $15 Bn worth of new smartphones online. With the number of smartphone users reaching the 550 Mn mark, it is estimated that, on average, a recommerce app user sells more than two smartphones from each household when the need to upgrade to new devices rises,” it added.

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