Cashify plans to add 200 new stores and expand into categories like laptops, tablets, and smartwatches, as the company looks to target to achieve full-year EBITDA positivity in 2025, said Mandeep Manocha, CEO-co-founder of Cashify.
“Opening stores was essential to build trust in refurbished products, offering touch-and-feel experiences and warranty-backed service,” he said.
This comes at a time when the company is pivoting towards strengthening its D2C approach. “We realised that higher margins and brand building with consumers could only be achieved through direct-to-consumer channels,” noted Manocha.
Expansion plans
The company’s expansion plans include deeper penetration into Tier 2 and Tier 3 markets from where it generates nearly 50 per cent of its demand.
“Over 50 per cent of our demand comes from Tier 2 and Tier 3 cities. Our expansion plans prioritise these regions to meet growing demand.”
The company reduced its losses by a third in 2024, driven by a shift to higher-margin direct-to-consumer (D2C) sales, which now account for 55 per cent of its revenue.
Diversification is also a priority as the company aims to reduce its reliance on smartphones, currently accounting for 92 per cent of its business, by doubling down on categories like laptops, tablets, and smartwatches. “SMEs and start-ups are major buyers, as refurbished devices significantly reduce costs,” he said.
Smartphones account for 92 per cent of current business; aim to bring it to 80 per cent by expanding into laptops, tablets, and smartwatches. The company’s Noida facility can refurbish 70,000-80,000 devices monthly; currently operating at 30,000.
Moncha added that the refurbished phone market is still nascent, but growing aspirations and higher device costs are fueling its rise “Our target audience is people who aspire to own premium products like iPhones but cannot afford new devices. Refurbished models offer them social capital at lower prices.”