NewQuest Capital Partners, Prosus and Cashify’s existing investors also participated in this round of funding
The company plans omnichannel expansion to tap the used mobile phones and gadgets market
Cashify CEO, Mandeep Manocha says that the company is targeting profitability by next year
Recommerce marketplace Cashify has raised $90 Mn in a Series E funding round led by NewQuest Capital Partners (“NewQuest”) and Prosus. Paramark Ventures and Cashify’s existing investors — Bessemer, Blume Ventures and Olympus Capital also participated in this round of funding
In an interaction with Inc42, Cashify founder and CEO Mandeep Manocha said that the company’s valuation has soared 2x in this Series E round.
In March 2021, the startup had raised $15 Mn in a Series D funding led by Olympus Capital’s clean energy and sustainability arm, Asia Environmental Partners.
Founded in 2013 by Mandeep Manocha, Nakul Kumar, Amit Sethi, and Siddhant Dhingra, Cashify is a recommerce marketplace that offers an online platform to sell old or used electronic gadgets – primarily smartphones, followed by laptops, tablets, desktops and Gaming Consoles.
Manocha informed us that the startup’s monthly Gross Merchandise Value (GMV) is currently pegged at INR 100 Cr, which is expected to double in the next six months.
“We are improvising on our unit economics and expect to break even in the next 18 months,” Manocha said.
The startup now plans to expand its offline footprints in the form of brick-and-mortar stores across the country.
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“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 told Inc42.
In terms of revenue model, the startup has an in-house logistics team which sources used/old mobile phones/gadgets (from customers willing to sell their items), by enabling home pick-ups with quality checks and balances. These electronic gadgets/ phones are then refurbished in Cashify’s service centres and then sold both online 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 told Inc42.
When it comes to competition Manocha notes that the ecommerce players like Amazon, and Flipkart which offer huge discounts on mobile phones, gadgets etc. are not active in selling used/ old mobile phones/ other gadgets. “We have, in fact, been able to carve a name for ourselves in the online space as a marketplace,” he added.
The funds, Manocha said will be utilised for strengthening the servicing capabilities, and expanding the logistics and tech teams besides setting up more service centres across 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 said in a statement.
According to the consulting firm, Redseer, the used phone market in India is expected to touch $10 Bn value by FY26 with the overall refurbished electronic industry growing at a CAGR of 16 per cent to reach $11 Bn by FY26.
The report added that the used smartphone market is seeing better margins for retailers compared to the sale of new 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.