Cashify said it has raised $15 million in a Series D funding round from Olympus Capital’s clean energy and sustainability arm, Asia Environmental Partners. Till now, the startup raised a total of $40 million in funding. In 2018, it raised funds from Chinese funds—CDH Investments, Morningside and Aihuishou.
The bulk of Cashify’s business is trading in old or used mobile phones, but it also makes instant cash payments for laptops and smartwatches.
The company plans to utilise the funds for marketing and expanding its offline footprint by adding around 90 stores to its existing 60 by mid-2022. It plans to do so through a franchise model in metro as well as Tier II cities.
After a brief slump due to the onset of the Covid-19 pandemic, the company’s phone sales are now growing at a rate of 7-8% month-on-month, co-founder Mandeep Manocha said. Cashify is targeting to become profitable in the next six months, he added.
Selling its enterprise software solution—the technology it uses to run its operations—to other businesses will be a key component in becoming profitable, he said.
Cashify plans to sell its software-as-a-service, or SaaS, offering to companies in Israel, the United States, Sri Lanka, and in the Middle East and Latin America.
“Our SaaS business is what we are putting a lot of resources and manpower behind,” Manocha told ET. “We believe that we can earn a lot of revenue, essentially 70-80% gross margin can actually contribute to our profitability to a large extent.”
The company is a trading partner for all major original equipment manufacturers (OEMs) in the country. It powers the exchange programme of Samsung Electronics, Vivo and OnePlus, etc. According to Manocha, it acts as the largest liquidation partner for e-commerce platforms Flipkart and Amazon’s device exchange programmes.
Founded in 2013 by Amit Sethi, Mandeep Manocha and Nakul Kumar, Cashify currently has 800 employees.
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