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Cash discount site CashKaro has raised around $3.6 million (₹25 crore) by Series A funding, from investors led by Kalaari Capital.
Founded by Swati and Rohan Bhargava, the company had raised a seed round of $750,000 from a group of investors working with Paypal, Investec and Goldman Sachs. A few of them participated in the fresh round as well.
Swati Bhargava said, “Affiliate sites account for 15-20 per cent of e-commerce sales in India, and because the model is performance-based, it is also recognised as a key marketing channel for retailers.
Acquisition strategy“With infusion of these funds, we plan to take CashKaro to new markets and pursue an aggressive customer acquisition strategy, while focusing on extending our mobile initiatives, including launching the CashKaro mobile app.”
CashKaro plans to use the funds to expand services and operations to Russia, Singapore, Malaysia, and the Gulf countries.
Recently, the company launched a product discovery and price comparison feature. Consumers can now see what cashback offers, and coupons are available at product level, thereby making an informed buying decision across sites.
CashKaro, which offers cash discounts for purchases through its website, has over 500 e-commerce sites as partners, including Amazon, Jabong, Flipkart and Paytm.
E-com in IndiaE-commerce in India is all set to be a $100-billion industry by 2020. This unprecedented growth has led to the growth and emergence of several affiliate/ancillary segments, including the cashback segment, says Swati Bhargava.
CashKaro, one of the first players in the cashback segment, has so far credited over ₹20 crore as cashback and driven over ₹500 crore in GMV (gross merchandise value) at a 30 per cent monthly growth.
“We expect to cross ₹1,000 crore in GMV and credit more than ₹35 crore as Cashback in the next few months,” she added.
Globally, cashback is a billion-dollar business. Ebates.com, the largest cashback site in the US, was recently acquired by Rakuten for $1 billion. Quidco.com, the largest cashback site in the UK, is said to be worth over $500 million.
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