Cashify, a marketplace for gadgets trade-ins and buybacks in India, has raised $90 million in a new financing round as it looks to expand its business into the world’s second-largest smartphone market.
Prosus Ventures and NewQuest Capital Partners have led the Series E funding of a seven-year-old Indian startup, Cashify said on Thursday. Existing backers including Paramark Ventures and Bessemer Venture Partners, Bloom Ventures and Olympus Capital also participated in the new round, which included some secondary transactions. The new round, which multiplies the startup’s valuation by 2.5 times since its Series C funding, takes Cashify’s funding to date to more than $130 million.
Cashify operates a similar platform – both online and physical stores and kiosks – for users to sell and buy used smartphones, tablets, laptops and other gadgets. Users buy and sell devices from the startup by visiting the startup’s website or app.
Additionally, Cashify also works with all top smartphone makers including Apple, Samsung, Xiaomi and Samsung to power their renewal programs. Cashify founder and CEO Mandeep Manocha explained in an interview with Meczyki.Net that the startup repairs and refurbishes appliances, giving them new life, without which they could end up in the trash bin.
“We cover the full spectrum, offering a full-stack solution,” he said. Manocha said the smartphone business accounts for about 90% of the startup’s revenue.
The startup is foraying into India’s massive market, where over 100 million smartphones are shipped every year and tens of millions of used smartphones are resold.
A significant number of smartphones sold in and outside the country are traced back to e-commerce or retail outlets. Many of these firms also work with Cashify, Manocha said.
But selling old smartphones requires establishing a high trust factor with the consumers. Manocha said Cashify has been expanding its presence in India through physical retail centers in recent years to reinforce this belief.
“We have invested heavily in increasing renewable capacity as well as selling smartphones to consumers. We are taking an all-encompassing approach, where we have established over 120 stores across 65 cities in the country. We are looking forward to expand our presence to 200 cities this year.
Cashify also operates outside India, which includes markets including the UAE, Turkey and Bangladesh. In international territories, the firm licenses its enterprise business. The firm’s enterprise business includes offerings such as diagnostic tools to evaluate functional and physical aspects of smartphones.
“For example, if you are an e-commerce firm looking to launch a smartphone exchange program, you can use our diagnostic tool to pick up old phones from the doorsteps of customers. In Turkey, moreover, we have micro Entrepreneurs have been empowered to create buyback business in their market,” he said.
Cashify will also deploy new funds to expand its team. The startup said it has been very cautious about hiring new talent in the past, a factor that has allowed it not to cut workforce even in uncertain times.
Amit Gupta said, “While there is a huge opportunity set in the re-commerce space, Cashify has a clear edge as a category leader, both in terms of customer experience and its data and technology to drive scale and reduce working capital. -The first focuses on the attitude.” NewQuest Capital Partners, partner and head of India and Southeast Asia, said in a statement.
“The success of its leadership position and the PhonePro brand is a testament to the quality of the management team and their vision for the region. We are excited to be a part of their journey and to be part of the consumer revolution they are driving.”