NewQuest, Prosus lead $90m Series E for India’s Cashify
NewQuest Capital Partners and Prosus Ventures have led a USD 90m Series E round for India’s Cashify, a marketplace for used smart phones and gadgets.
Korea’s Paramark Ventures came in as a new investor alongside existing backers Olympus Capital, Bessemer Venture Partners, and Blume Ventures. Olympus, which is participating via its cleantech and sustainability arm Asia Environmental Partners, led a USD 15m Series D last year. More than USD 130m has been raised since the company's inception in 2013.
Cashify brands itself as both an e-commerce player and a local e-waste management leader. Devices are collected by representatives, who pay cash at people’s doorstep, as well as trade-in programs with manufacturers. Much of the model aims to increase consumer willingness to buy used devices through aftersales services in repair and buyback.
The refurbishment and retail brand, PhonePro, is positioned as a quality certification grade unto itself. PhonePro claims to conduct 32 hardware and software tests on each phone to ensure they are in like-new condition with all accessories intact, albeit with an opened box. Sales under this service come with a six-month warranty.
An aggressive expansion drive was launched last year that saw the company expand its brick-and-mortar footprint to more than 150 stores across 51 cities, with popular Indian actors brought in as brand ambassadors. To date, about 5m devices have been bought and 4m of them have been re-sold to a customer base of some 14m. The app has been downloaded more than 10m times.
“While there is a large opportunity set in the re-commerce space, Cashify has a clear edge as a category leader with its focus on customer experience and its data and tech-first approach to drive scale and working capital minimization,” Amit Gupta, head of India at NewQuest, said in a statement.
“Its leadership position and success of the PhonePro brand are a testament to the quality of the management team and their vision for the sector.”
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