Cashify, marketplace for gadgets trade-in and redemption in Indiahas raised $90 million in a new funding round as it looks to expand its business into the world’s second-largest smartphone market.
Prosus Ventures and NewQuest Capital Partners have spearheaded Series E funding for a seven-year-old Indian startup, Cashify reported Thursday. Paramark Ventures and existing backers including Bessemer Venture Partners, Blume Ventures and Olympus Capital also took part in the new round, which included several secondary transactions. The new round, which increases the startup’s valuation by 2.5x, brings Cashify’s current funding to over $130 million.
Cashify operates a platform of the same name – both online and in physical stores and kiosks – where users can sell and buy used smartphones, tablets, laptops and other gadgets. Users sell and buy devices from a startup by visiting the startup’s website or app.
In addition, Cashify also works with all leading smartphone manufacturers including Apple, Samsung, Xiaomi and Samsung to support their recovery programs. The startup repairs and upgrades these devices, giving them a new life without which they would most likely end up in the bin, explained Mandeep Manocha, founder and CEO of Cashify, in an interview with TechCrunch.
“We covered the whole spectrum, offering a complete solution,” he said. According to Manochi, the smartphone business accounts for approximately 90% of the startup’s revenue.
The startup is entering the big Indian market, where over 100 million smartphones are sold annually and tens of millions of used smartphones are resold.
A significant number of smartphones sold in the country and abroad are returned to online stores or retail stores. Many of these firms also work with Cashify, according to Manochi.
But selling old smartphones requires establishing a high consumer confidence factor. In recent years, Cashify has been expanding its presence in India to include physical retail outlets to bolster that trust, Manoch said.
“We have invested heavily in advanced recovery options while also selling smartphones to end consumers. We use an omnichannel approach: we have opened more than 120 own stores in 65 cities across the country. This year we hope to increase our presence to 200 cities,” he said.
Cashify also has operations outside of India, including markets such as the UAE, Turkey and Bangladesh. In international regions, the company licenses its business. The firm’s corporate business includes offerings such as a diagnostic tool to evaluate the functional and physical aspects of a smartphone.
“For example, if you are an e-commerce firm looking to launch a smartphone swap program, you can use our diagnostic tool to pick up old phones at customers’ doorsteps. In addition, in Turkey, we have provided micro-entrepreneurs with the opportunity to build a buyback business in their market,” he said.
Cashify will also use the new funds to expand its team. The startup said it has been very cautious about hiring new talent in the past, which has kept it from laying off staff, even during challenging times.
“While there are great opportunities in the re-commerce space, Cashify has a clear advantage as a leader in its category, with a strong focus on customer experience and a data and technology-driven approach to increase scale and minimize working capital.” said Amit Gupta. , Partner and Head of NewQuest Capital Partners in India and South East Asia.
“His leadership position and the success of the PhonePro brand is a testament to the quality of the management team and their vision for the sector. We are excited to be part of their journey and part of the consumer revolution they are driving.”
Credit: techcrunch.com /