How e-commerce firm Cashify is cashing in on India's circular economy

On the eve of Sustainability Day, The Federal visited Cashify’s facility in Delhi-NCR to explore the processes behind refurbished devices. Located in Noida’s Sector 80, the 80,000 sq. ft. facility employs over 650 workers, primarily from ITI backgrounds.

In a candid discussion, the company’s CEO, Mandeep Manocha, underscored the significance of re-commerce and how the idea is gaining momentum in India.

According to research firm RedSeer, the refurbished electronics market in India is projected to grow to $11 billion in gross value by March 2026, up from $5 billion in March 2021. However, the re-commerce sector remains crowded with many unorganised players, where Cashify has carved out a 2% market share.

Discussing the company’s unique selling proposition, Mandeep emphasised that Cashify focuses on two primary areas: purchasing devices from consumers and selling refurbished phones. “Our communication strategy is centred around helping individuals recognise the value of their unused devices, encouraging them to sell rather than let these items contribute to e-waste,” he stated.

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“Our straightforward process, including easy price discovery and doorstep pickup, makes it simple for customers to turn old phones into cash while promoting environmental sustainability,” he added.

Staff manning their workstations at the Cashify facility in Noida | The Federal

'Reliable alternative'

The company prioritises privacy by performing factory resets on-site and conducting multiple data-wiping checks within its facilities. Mandeep noted, “On the selling side, we provide a reliable alternative to the second-hand market with refurbished phones that come with warranties and quality assurances. Our 180 service centres across India further enhance customer trust by offering convenient access to support and repairs.”

While users can sell a variety of items besides mobiles on the Cashify platform, Mandeep acknowledged that there are currently no options to buy these products. He indicated that future integration of these categories is under consideration.

Looking to expand

Looking ahead, Cashify is set to expand its product range to include laptops and iPads, alongside a recent successful venture into smartwatches. However, Mandeep clarified that the company will not pursue sales of earbuds due to hygiene concerns and is steering clear of heavy goods like air conditioners because of logistical challenges. “Our focus remains on mobility products like phones, laptops, smartwatches, and gaming consoles,” he explained.

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Cashify’s customer base primarily consists of users from Delhi-NCR, Mumbai, and Bengaluru. Mandeep highlighted plans to capitalise on its strong presence in southern India, especially in metropolitan areas.

The company operates 182 stores across India and plans to expand its network to between 400 and 500 stores within the next two years. “This expansion will enhance our physical footprint and make our services more accessible to customers,” Mandeep said.

Regarding financials, Cashify achieved over ₹800 crore in revenue two years ago. Mandeep stated, “This year, we are focusing on the quality of our business rather than just revenue growth. We are confident of becoming EBITDA positive in FY25, as we prioritise profitability over hyper-growth.” While internal targets have been set, he refrained from disclosing specific figures.

Capital infusion

When asked about capital infusion, Mandeep confirmed that Cashify has sufficient capital and no immediate plans to raise funds. Cashify raised $90 million in Series E funding in 2022, led by NewQuest Capital Partners and Prosus.

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The partnership with Bollywood actor Rajkummar Rao as a brand ambassador has also contributed positively to Cashify’s growth, particularly in solidifying the brand in northern India, Mandeep said.

“We’ve renewed our collaboration with Rajkumar and plan to ramp up our marketing efforts significantly in the next two to three quarters. Our strategy includes a diverse media mix to reach customers across all channels,” he said.

In terms of technological advancement, Mandeep shared that Cashify is focused on integrating AI and machine learning into its workflows, particularly testing. “We have new machines arriving soon, and we expect to showcase them in a couple of months. This will significantly enhance our operational efficiency,” he stated.

(The writer visited the Cashify facility in Delhi-NCR at the invitation of the company.)