Delhi NCR-based recommerce startup Cashify’s sales jumped over 1.6X in the financial year ended March 31, 2023. The startup, widely known for selling refurbished mobile phones, posted an operating revenue of INR 815.9 Cr during the financial year 2022-23 (FY23), an increase of 64% from INR 497.9 Cr in the previous fiscal year.
Founded in 2013 by Mandeep Manocha, Nakul Kumar, Amit Sethi, and Siddhant Dhingra, Cashify is a recommerce marketplace that offers an online platform to sell old or used electronic gadgets like smartphones, laptops, tablets, desktops and gaming consoles.
Besides generating revenue from selling refurbished products, the startup also earned revenue by providing repairing services for devices in FY23. During the year under review, it earned INR 762.4 Cr by selling refurbished products and INR 53.5 Cr from repairing services.
Including other income, Cashify earned a total revenue of INR 825.4 Cr in FY23, up 63.6% from INR 504.4 Cr in the previous fiscal year.
Despite the rise in revenue, Cashify’s net loss increased in FY23. Its net loss grew 49% to INR 147.9 Cr during the year under review from INR 99.3 Cr in FY22.
Total Expenses Near INR 1,000 Cr Mark
Cashify’s total expenditure grew 61% to INR 973.4 Cr in FY23 from INR 603.1 Cr in the previous fiscal year.
Procurement Cost The Biggest Contributor: The startup spent the highest amount on purchasing old phones and laptops. Its procurement cost stood at INR 748.7 Cr in FY23, an increase of 66% from INR 449.9 Cr in the previous fiscal year. Procurement cost accounted for 77% of its total expenditure.
Employee Benefit Expense Rise: Employee costs surged 55% to INR 117.2 Cr in FY23 from INR 75.4 Cr in FY22, indicating an increase in the employee count. As per LinkedIn, the startup currently has 1,303 employees, a 12% increase from the previous year.
Advertising Expenses Decline Marginally: Unlike most ecommerce players, Cashify’s advertising expenses declined slightly to INR 38 Cr in FY23 from INR 39.4 Cr in the previous fiscal year.
Cashify has bagged $124 Mn across multiple rounds to date. It counts the likes of Amazon, Prosus, NewQuest Capital Partners, Bessemer, Blume Ventures and Olympus Capital among its backers.
Its EBITDA margin deteriorated to -17.2% in FY23 from -18.1% in FY22.
The startup last raised $90 Mn in its Series E funding round, led by NewQuest Capital, last year. At that time, Cashify said it would use the funds to expand its offline footprints by opening brick-and-mortar stores across the country.
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