Cashify scoops up $90 Mn in Series E round

Re-commerce marketplace Cashify has raised $90 million in its Series E round led by NewQuest Capital and Prosus. This round also saw participation from existing investors such as Bessemer, Blume Ventures, Olympus Capital, and Paramark Ventures.

The Gurugram-based company has raised $130 million to date including a $15 million Series D round in March last year.

Cashify will use the fresh capital for increased hiring, building technology infrastructure, marketing, as well as expansion into new markets, said the company in a statement. The company aims to expand its reach to 250 stores in 100 cities by the next 12 months from 120 stores in 45 cities.

Cashify said that it saw a 2.5X jump in its valuation as compared to Series D round. However, the company did not provide exact numbers. According to Fintrackr, the company was valued at around $250 million when it received $50 million as the first tranche of this round earlier this month.

Cashify lets customers sell and buy old electronic gadgets, mostly mobile phones and laptops. Apart from buying directly from users, it also works with several offline and online channels and OEMs such as Xiaomi, OnePlus and Samsung for their exchange programs.

The company generates around 90% of its business from the smartphone category and the rest comes from laptops.

Led by Mandeep Manocha, Cashify competes with Greendust and Yaantra among several others. In January, Yaantra was acquired by e-commerce major Flipkart in a $40 million deal.

For the fiscal year ending on March 31, 2021, Cashify saw a minor decline in its operating revenue to Rs 340.4 crore from Rs 345.3 crore in the previous year. However, the company had managed to control its losses which came down to Rs 35 crore in FY21 from Rs 46.2 crore in FY20.

Cashify claims that it doubled its revenue over the last 12 months and expects the business to grow by 2-2.5x in the next one year. The company also aims to achieve breakeven over the next 18 months before considering a potential public listing.