Gurgaon based coupon and cashback offering platform ‘CashKaro’ has raised a sum of Rs 25 Crore in Series A funding from Kalaari Capital.
CashKaro was started in 2013 by Swati and Rohan Bhargava to drive traffic and earn through the net margin. They had previously raised sum of Rs 5 Crore through angel investors.
Some of the potential rivals of CashKaro include CouponDunia, owned by Times Internet Ltd (TIL), CouponNation, CouponChaska and Pennyful. A lot of websites have come up in the same zone due to low entry barriers but only a few have received external funding.
Kalaari’s investment might change the scale of this industry as they have also been early investors of Snapdeal and Myntra.
The company plans to use the funding to expand its business internationally, also the company is planning to launch an app for both Android and iOS. The investment will mainly be used in marketing and technology enhancement of the website.
“Affiliate sites account for 15-20% of eCommerce sales in India and because the model is performance based it is also recognized as a key marketing channel for retailers,” said the co-founders of CashKaro.com.
While talking to one of the co-founders of CashKaro.com, Swati Bhargava, we asked her about the cashback generated by the website and she said “We have generated about Rs 20 Crore just in cashbacks and also the eCommerce websites affiliated with us got sales worth Rs 500 Crore just from us.”
She further added, “We expect to cross Rs 1000 crores in GMV and credit more than Rs 35 crores as Cashback in the next few months”
India’s love for savings and the drive for online purchase has expanded the market opportunities for websites like CashKaro.
In this same space, Rakuten had acquired US based cashback company Ebates for $1B in September last year. On the other hand, Shanghai based Fanli (the largest cashback website in China) secured $100M in Series C round of funding by Rakuten. CashKaro is trying to tap Singapore and will face some serious competition from both Ebates and Fanli.