CashKaro, a leading online cashback and coupons platform in India, has raised INR 25 crore (US$3.8 million) in Series A round of funding from Kalaari Capital. Some of its existing investors also participated.
The new funding will enable the Delhi-based startup to expand to new markets and pursue an aggressive customer acquisition strategy while focusing on extending its mobile initiatives, including launching the CashKaro mobile app.
The company had earlier raised US$750,000 in angel funding from a group of investors based in London, who worked with companies such as Paypal, Investec and Goldman Sachs.
“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. In Kalaari Capital, we have found the right advisors to scale up our business and build a robust ecosystem. Having been early investors in many successful e-commerce businesses such as Snapdeal, Myntra and Zivame, they have a wealth of experience in this sector which will be extremely valuable,” Swati and Rohan Bhargava, Co-founders of CashKaro.com, said in a joint statement.
Users can get up to 50 per cent extra cashback when they visit their favourite sites via CashKaro and shop. CashKaro receives a commission from the retailers from which it pays cashback. This cashback is in the form of real cash, which is paid over and above all other coupons and discounts.
Till date, CashKaro claims to have credited over US$3 million as cashback and driven over US$7.5 million in GMV. According to the startup, it is growing at over 30 per cent month on month. “We expect to cross US$15 million in GMV and credit more than US$5.3 million as cashback in the next few months,” the couple added.
“We believe the e-commerce market in India will grow to upwards of US$100 billion over the next decade and companies with unique offerings that help fuel the overall market growth will benefit immensely. CashKaro perfectly represents India’s love for savings and will play a key role in the growth of the eCommerce market,” said Rajesh Raju, Managing Director at Kalaari.