Cashify, a market for devices trade-ins and buybacks in India, has raised $90 million in a brand new financing spherical because it appears to be like to develop its enterprise on the planet’s second-largest smartphone market.
Prosus Ventures and NewQuest Capital Companions led the seven-year-old Indian startup’s Sequence E funding, Cashify stated on Thursday. Paramark Ventures and current backers together with Bessemer Enterprise Companions, Blume Ventures and Olympus Capital additionally participated within the new spherical, which included some secondary transactions.
The brand new spherical, which multiples the startup’s valuation by 2.5 instances since Sequence C funding, takes Cashify’s to-date funding to over $130 million. IndigoEdge served because the monetary advisor for this deal.
Cashify operates an eponymous platform — each on-line and bodily shops and kiosks — for customers to promote and purchase used smartphones, tablets, laptops and different devices. Customers promote to and purchase gadgets from the startup by visiting the startup’s web site or app.
Moreover, Cashify additionally works with all high smartphone makers together with Apple, Samsung, Xiaomi and Samsung to energy their refurbishing packages. The startup repairs and refurbishes these gadgets, giving them new lives with out which they might have possible ended up within the rubbish bin, defined Mandeep Manocha, founder and chief govt of Cashify, in an interview with TechCrunch.
“We’ve lined the complete spectrum, providing a full-stack answer,” he stated. Smartphones enterprise accounts for roughly 90% of the startup’s income, stated Manocha.
The startup is tapping into India’s giant market, the place over 100 million smartphones ship annually and tens of thousands and thousands of used smartphones get resold.
A big variety of smartphones bought within the nation — and past — get returned to the e-commerce or stores. Many of those companies work with Cashify as effectively, stated Manocha.
However promoting previous smartphones requires establishing a excessive belief issue with shoppers. Cashify has been increasing its presence in India by way of bodily retail factors lately to solidify this belief, Manocha stated.
“We’ve invested closely in enhanced refurbished functionality, and on the similar time, promoting smartphones to finish shoppers. We’re taking an omnichannel method, the place we’ve got established over 120 shops of our personal in 65 cities within the nation. We hope to extend our presence to 200 cities this yr,” he stated.
Cashify additionally has operations exterior of India, together with in markets together with the UAE, Turkey and Bangladesh. Within the worldwide areas, the agency licenses its enterprise enterprise. The agency’s enterprise enterprise contains choices similar to a diagnostic software to judge a smartphone’s practical and bodily points.
“As an example, if you happen to’re an e-commerce agency that desires to begin a smartphone alternate program, you need to use our diagnostic software to select up previous telephones from clients’ doorsteps. In Turkey, moreover, we’ve got empowered microentrepreneurs to construct a buyback enterprise of their market,” he stated.
Cashify may also deploy the recent funds to develop its group. The startup stated it has been very cautious about hiring new expertise prior to now, an element that has allowed it to not lower workforce even within the unsure instances.
“Whereas there’s a giant alternative set within the re-commerce area, Cashify has a transparent edge as a class chief with its concentrate on buyer expertise and its knowledge and tech-first method to drive scale and dealing capital minimization,” stated Amit Gupta, accomplice and head of India and Southeast Asia, NewQuest Capital Companions, in a press release.
“Its management place and success of the PhonePro model are a testomony to the standard of the administration group and their imaginative and prescient for the sector. We’re excited to be part of their journey and part of the patron revolution that they’re driving.”
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