Recommerce marketplace Cashify raises $90 mn in Series E funding
Amazon invested in Cashify, a re-commerce marketplace for consumer electronics such as smartphones and laptop computers. NewQuest Capital Partners & Prosus lead the $90 million Series E investment for the Gurugram-based business. Cashify has issued a special resolution to issue 10 equity shares and 2195 Series E preferred shares at an issue price of Rs 2,39,696 per share in its ongoing round to earn Rs 52.85 crore. Amazon contributed Rs 39.5 crore, while current investor Blume Ventures contributed Rs 13.45 crore. This appears to be a round of Series E. Amazon will own 2.12% of the company after this transaction.
Cashify allows clients to sell and buy used electrical devices, mostly mobile phones and laptop computers. Aside from purchasing directly from customers, the company collaborates with several retail and online channels, as well as OEMs like Xiaomi, OnePlus, and Samsung, for their exchange programs. It also collaborates with e-commerce platforms Amazon and Flipkart to make purchasing and selling refurbished phones and laptops easier. According to Cashify, mobile and laptop devices account for 90% of the company’s revenue. It competes with Greendust and Yaantra, which was purchased by Amazon’s rival Flipkart earlier this year for $40 million.
Cashify’s growth in FY21 was flat, owing primarily to the pandemic, however, the company reduced its losses by 23.6% to Rs 35.3 crore over the fiscal year. Meanwhile, its operating revenue in the fiscal year ended March 2021 was Rs 340 crore. The corporation has yet to file its fiscal year 22 results.
Amazon has boosted its funding in Indian companies in recent years. Amazon has also invested in D2C beauty business MyGlamm, wealth management company Smallcase, and retail tech startup Perpule, and has purchased bus aggregator Shuttl, insurance startup Acko, fintech lender Capital Float, and digital payments startup ToneTag. In April of this year, the company based in the United States purchased the social commerce platform GlowRoad. Amazon established the Amazon Smbhav Venture Fund for Indian businesses last year and made the first ever investment in Gurugram-based MSME-focused finance firm M1xchange.
Cashify seems to be a captivating startup with inspiring new development on consumer services platform. This startup would continue to prosper in the future. Wishing this startup good luck in all its future endeavors.Shishir Gupta, Founder and CEO, StartupLanes
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