In FY22, Cashify earned operating revenue of Rs 498 Cr
With $90 million in capital and a burgeoning scale that came close to reaching Rs 500 crore in FY22, Cashify has established itself as the industry’s face.
According to Cashify’s annual financial records filed with the Registrar of Companies, the company’s revenue from operations increased by 50% to Rs 498 crore in FY22 from Rs 333 crore in FY21 due to the demand for refurbished laptops and smartphones (RoC).
93.37% of the total revenue, which climbed 47.62% to Rs 465 crore in the fiscal year ending March 2022, came from the sales of old mobile phones and other electronic devices such speakers, laptops, tablets, gaming consoles, and smartwatches.
The remaining operational income was generated by auxiliary services including phone recycling, refurbishment, and repair, which increased 83.33% to Rs 33 crores in the most recent fiscal year. The company presently operates 170 stores, and by March, they hope to have 250.
The cost of the materials used made up 74.6% of the total cost of the project’s expenses. From Rs 295 crore in FY21 to Rs 450 crore in FY22, this expense increased by 52.5%.
Employee benefit costs, which made up about 12.4% of the overall cost, rose to the position of second-largest expense. The company increased its workforce during FY22, and as a result, the cost of salaries and other perks increased by 74.4% to Rs 75 crore.
Cashify intends to employ over 300 individuals for its businesses by March 2023. The costs for FY23–24 will rise even more as a result.
The Gurugram-based company extensively invested in marketing and conducted campaigns across television and digital media to stay up with growth. Its marketing and advertising costs increased 5.3X to Rs 39.4 crore in FY22, driving up its overall expenditure by 62.5% to Rs 603 crore.
Cashify’s losses have increased significantly faster than its revenue growth, which grew by 2.8X and reached Rs 99 crore in FY22.
Cashify, which is backed by Amazon and has raised $130 million so far, competes with Yaantra, which Flipkart purchased for $40 million in January of last year.
One believes the company missed a trick by not emphasizing its reuse and recycle theme as a sustainability concerned corporation despite meeting a crucial need in a major market like India. If the company also used green energy for operations, it might be an even more proud example of sustainability in a market the size of India. Who knows, the company may eventually be able to receive carbon credits for its efforts.
In FY22, its ROCE and EBITDA margins were -203.19% and -18.15%, respectively. During the previous fiscal year, Cashify spent Rs 1.21 to generate one unit of operating revenue.
After significant investment rounds, the increase in costs has almost become a given as businesses attempt to fulfil improved claims. At least in FY23, margins should start to improve.
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