Indian e-commerce deals site CashKaro gets $10 million Series B led by Korea Investment Partners – TechCrunch

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CashKaro co-founders Rohan and Swati Bhargava

CashKaro, one of many main cashback and coupon websites in India, will broaden its vary of providers for e-commerce after elevating $10 million in Sequence B funding, the New Delhi-based startup introduced at present. The spherical was led by Korea Funding Companions, with participation from returning investor Kalaari Capital.

TechCrunch final lined CashKaro 5 years in the past when it raised a $3.eight million Sequence A. The newest spherical brings the corporate’s complete funding to date to $15 million.

Over the previous 5 years, the corporate has launched new merchandise, together with a worth comparability service, and EarnKaro, a social commerce cashback app that launched about 18 months in the past. A part of the Sequence B can be used to broaden EarnKaro, which has about a million registered customers. It permits social commerce sellers, or individuals who use social media platform and messaging apps like WhatsApp to promote gadgets, make further money by creating affiliate hyperlinks to main e-commerce websites like Amazon and Flipkart. The launch of EarnKaro additionally allowed CashKaro to succeed in into smaller cities and rural areas, the place buyers usually want to order from folks whose suggestions they belief (i.e. “micro-influencers”) as an alternative of e-commerce websites.

Based in 2013 by husband-and-wife workforce Swati and Rohan Bhargava, CashKaro presently claims about 5 million customers and has partnerships with greater than 1,500 e-commerce websites, together with a number of the greatest gamers in India, like Amazon, Flipkart, Myntra and Ajio. The corporate monetizes by charging manufacturers a fee for transactions made by means of CashKaro hyperlinks. The commissions are additionally how CashKaro is ready to give money again to buyers, which could be deposited into their financial institution accounts or redeemed as present vouchers for Flipkart and Amazon. CashKaro’s founders says it presently processes a couple of million month-to-month transactions.

CashKaro competes for the eye of internet buyers with a bevy of different coupon and cashback providers in India. A few of its rivals embody CouponDunia, GrabOn and GoPaisa.

“We’re the one VC-funded cashback web site in India. Whereas capital itself will not be the differentiator, it’s what we have now been capable of do with that capital which units us aside,” Bhargava informed TechCrunch, including that CashKaro’s cashback charges are among the many highest available in the market.

“Provided that we now drive near a half a billion {dollars} in GMV by means of CashKaro and EarnKaro to our companion websites, we’re capable of get larger fee charges from companion websites, which in flip helps us move essentially the most profit to our members.”

Whereas COVID-19 has affected e-commerce companies around the globe due to sudden adjustments in client habits, the scenario in India was notably sophisticated in April and Might as a result of there have been containment zones all through the nation, and in some zones, deliveries of non-essential gadgets was not allowed till Might.

“COVID-19 caught us without warning and Indian e-commerce was neither ready to deal with the surge in demand, nor did we anticipate so many provide facet and supply points,” mentioned Bhargava. “Given CashKaro works with all e-commerce websites, we noticed these traits as properly.”

Since June, nonetheless, gross sales have began to recuperate and is seeing development as folks proceed to remain dwelling and store on-line.

“Our enterprise is rising month on month and, in actual fact, the pandemic spurred our growth into new digital classes, like schooling, gaming and on-line video streaming, which have seen exponential development,” Bhargava added. Gross sales of electronics, dwelling and kitchen gadgets, private care and wonder have additionally elevated over the previous few months.

On the similar time, the financial influence of the pandemic has prompted extra folks to hunt cashback gives and different money-saving offers.

“We’re seeing that saving consciousness has gone up amongst internet buyers and individuals are discovering providers like CashKaro and EarnKaro extra helpful than ever earlier than,” Bhargava mentioned. “On the consumer facet, our companions, comparable to Amazon, Myntra and Ajio, are additionally working with us extra carefully as a result of they’re seeing that our efficiency advertising and marketing mannequin is the proper option to scale whereas protecting profitability in thoughts amidst these robust occasions.”

The brand new spherical of capital can be used for CashKaro’s purpose of doubling its registered member base over the following 12 months from the present 5 million. Bhargava informed TechCrunch that it’s going to broaden cashback gives into classes like bank cards and schooling, and launch new advertising and marketing campaigns centered round occasions like upcoming festivals and the Indian Premier League season, which begins this weekend.

The corporate can be “chasing aggressive development for EarnKaro and reaching out to extra influencers, resellers, housewives and college students who’re our main goal marketplace for this product,” she added. Lastly, a part of the Sequence B can be used for hiring, together with management positions.

For Korea Funding Companions, one of many largest South Korean enterprise capital companies, CashKaro represents an opportunity to faucet into India’s fast-growing e-commerce market. In a press release, managing companion Hudson Kyung-sik Ho mentioned, “We consider it is a extremely scalable alternative and each Swati and Rohan have set it on a really thrilling development trajectory. CashKaro and EarnKaro collectively have proven distinctive unit metrics and we’re actually excited to be part of India’s affiliate story.”

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