Gurgaon based online used-phones and electronics marketplace Cashify.in, on Thursday raised USD 12 million in series-C funding round led by Chinese investors--CDH Investments, MorningSide Group and AiHuiShou. The company said it will use the funds to strengthen operational capability and technology needs to upscale their business in India and abroad.
Existing investors, US-based Bessemmer Ventures and China based Shunwei also participated in the round.
Cashify enables the customers to sell their old gadgets online and get instant cash along with free home pick up. The company plans to also strengthen foothold in more cities in India. Expanding the offline reach and scaling pop-up store services is on top of the growth-agenda for Cashify.
“The need to upgrade to better smartphones and laptops is on the rise, and is fueling Cashify’s growth. Upgrade cycles have now come well under 12 months from the previous 20 month duration, and this is where Cashify fulfills the need to get more liquidity,” said Mandeep Manocha, CEO at Cashify.in.
Since the used-smartphones market is unorganized, Cashify, plans to use the funds raised to improve the overall standards for grading and assessment, and enhance quality control procedures.
The deal becomes very important with Aihuishou coming in who is a bidding-based C2B platform for recycling and selling second-hand electronic items such as mobile phones.
“With more Chinese capital support and Aihuishou’s strategic alliance, Cashify will be able to reshape the re-commerce industry in India. So far, they have executed and evolved fast; in the near future, they will be able to leverage all resources and bring up a more effective omni-channel strategy to change this industry,” said Xiaoyu Matthew Ma, vice-president, CDH.
Founded in 2013 by Nakul Kumar (COO), Mandeep Manocha (CEO) and Amit Sethi (CTO), Cashify was formerly called ReGlobe and is a registered trademark of Manak Waste Management Pvt Ltd.
Cashify is also in an exclusive partnership with Samsung, Apple, Xiaomi and OnePlus for the buyback and exchange service. The partnership is such that even if the phones of these companies are given at their official brick and mortar stores, the exchange process is powered by Cashify, where they work on the devices and sell offline.
They have recently added the feature called Screen Pro where mobile screen repair service will be given at home to the customers.
The company has also partnered with platforms like Amazon, Flipkart, PayTM, Croma, and to enable buy-back and exchange across 25 cities. Cashify.in had previously raised USD 7 Million from investors such as Blume entures, Bessemmer Ventures, Shunwei, M&S Partners and Trifecta capital.
“While a lot of pre-owned phones buying in India happens offline, but by the second or third quarter of next year we plan to sell the devices online,” added Manocha.
At present, e-commerce giants like Amazon India, Flipkart and Snapdeal already sell refurbished phone on their platform. According to sources in Cashify, the company may partner with some of these e-commerce players or may go alone to sell it on their platform.
“We believe Cashify team has the best expertise in the 3C-recycling business as well as great vision for the Indian market. We also share the same view that the India market has huge growth potential in the next 10 years and would invest more in near future", said Bo Zhang, VP- Morningside.
While there is currently no equal competition in this segment, Cashify is making sure to lead the market.