Recommerce platform Cashify Raises $90 Mn in new funding round
- ByStartupStory | June 23, 2022
Cashify, a re-commerce marketplace, has raised $90 million in a Series E fundraising round that was co-led by Prosus and NewQuest Capital Partners (“NewQuest”). This round of funding was also backed by Paramark Ventures, as well as Cashify’s current investors Bessemer, Blume Ventures, and Olympus Capital. Mandeep Manocha, the founder and CEO of Cashify, claimed that this Series E investment had doubled the company’s capitalization.
Asia Environmental Partners, the clean energy and environmental division of Olympus Capital, led a $15 million Series D fundraising round for the firm in March 2021. The startup’s monthly Gross Merchandise Value (GMV) is currently estimated to be INR 100 Cr, and in the upcoming six months, it is anticipated to double.
Cashify is a re-commerce marketplace that provides an online platform to sell used or obsolete electronic devices, mostly smartphones, followed by laptops, tablets, desktops, and gaming consoles. It was founded in 2013 by Mandeep Manocha, Nakul Kumar, Amit Sethi, and Siddhant Dhingra. The firm now has plans to spread its physical presence across the nation by opening brick-and-mortar locations.
The startup’s internal logistics team sources used/old mobile phones and gadgets (from consumers wishing to sell their things) by facilitating home pick-ups with quality controls and checks. In Cashify’s service centres, these electrical devices/phones are then repaired before being sold both online and offline. Outside of India, Cashify now operates in Bangladesh, the UAE, and Turkey, among other markets.
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.
The CEO of Cashify stated, “We have been able to get the majority of old mobile phones and gadgets from metros, tier 1 cities, but our buyer segment for these gadgets is often centred outside of tier 1 towns where we are extending our footprint.” he added, “we have managed to carve out a name for ourselves as a marketplace in the online realm.
The new funds will also be used by Cashify to expand its workforce. The business claimed that it had always been extremely cautious when bringing on new staff, which had allowed it to maintain its personnel even during tumultuous economic times. The business is taking advantage of India’s sizable market, where tens of millions of used cell phones are sold each year and over 100 million new handsets are shipped each year.
Cashify has a distinct advantage as the category leader with its focus on customer experience and its data and tech-first approach to drive scalability and working capital minimization, even if there is a sizable opportunity set in the recommerce industry. The strength of the management team and their understanding of the market are demonstrated by its leading position and the popularity of the PhonePro brand. Amit Gupta, Partner and Head of Indi and Southeast Asia at NewQuest Capital Partners, said in a statement: “We’re thrilled to be a part of their journey and the consumer revolution they’re driving.
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