The Growing Market for Second-Hand Smartphones in India

Each year, tens of millions of individuals in India purchase pre-owned smartphones, establishing the nation as the world’s second-largest market for such devices. While phone manufacturers and major online retailers like Amazon and Flipkart recognize this trend, the complexities involved in inspecting, refurbishing, and reselling used phones present a significant challenge.

However, these companies are aware that offering trade-in options for existing handsets substantially increases customer willingness to purchase new smartphones.

Cashify Secures $15 Million in Series D Funding

A startup focused on assisting these businesses in overcoming this hurdle announced on Thursday that it has secured $15 million in a new Series D financing round. The investment was led by New York-based Olympus Capital Asia, channeled through Asia Environmental Partners, a fund specifically dedicated to environmental initiatives.

Having already raised $42 million to date, the five-year-old startup, which initially benefited from investment from Blume Ventures, is poised for further expansion.

Cashify's Platform and Services

Cashify operates a platform – encompassing both online resources and a network of physical stores and kiosks – enabling users to both sell and purchase used smartphones, tablets, smartwatches, laptops, desktops, and gaming consoles.

Currently, smartphones constitute approximately 90% of the company’s business, according to Mandeep Manocha, founder and CEO of Cashify, in a recent interview with TechCrunch.

“Our core value proposition for consumers is simplifying the process of selling their devices,” Manocha explained. “Users can visit our website or app, answer a series of questions to objectively assess their device’s condition, and receive an immediate valuation.”

“Should the offered price be acceptable, we provide doorstep pickup and instant payment.”

Addressing Challenges in Handling Returned Items

Previously, the difficulties e-commerce companies face globally in managing returned merchandise were highlighted. These challenges include ensuring the integrity of returned smartphones – verifying they haven’t been tampered with – and managing the associated logistical costs.

Manocha noted that while phone manufacturers and e-commerce businesses have improved their handling of returns in recent years, substantial financial losses still occur. This situation has created a significant opportunity for companies like Cashify.

Cashify's Market Position and Partnerships

In fact, Cashify asserts its position as the leading player in this market segment within India. The startup maintains partnerships with “virtually all OEMs,” including prominent brands such as Apple, Samsung, OnePlus, Oppo, Xiaomi, Vivo, and HP.

“Apple currently utilizes our platform within its retail stores.” Furthermore, Apple.com leverages Cashify’s trading platform for trade-in programs offered to Indian consumers.

Collaboration with Major E-commerce Platforms

Cashify also collaborates with leading Indian e-commerce companies – Amazon, Flipkart, and Paytm Mall. These firms utilize Cashify’s trading and exchange software and depend on the startup for device liquidation.

Cashify then refurbishes these devices and sells them as certified pre-owned units to customers.

“We effectively manage the majority of trading activity, regardless of whether customers interact with us directly, or through popular e-commerce platforms or phone manufacturers.” Even when customers trade in devices to OEMs or e-commerce firms, these companies often sell those devices to Cashify, which serves over 2 million customers across more than 1,500 cities.

Future Expansion Plans

The newly acquired capital will be partially allocated to expanding Cashify’s offline presence. Manocha stated that the company currently operates dozens of physical stores and kiosks in shopping malls nationwide, and these locations have proven highly effective in enhancing brand recognition.

The startup also intends to expand its operations beyond India, recruit additional personnel, and increase investment in marketing its services. The team is also focused on broadening its expertise to encompass additional hardware categories, such as cameras.

“The Cashify management team has a proven ability to build a robust consumer franchise and cultivate strong relationships with OEMs, e-commerce companies, and electronic product retailers, ensuring a presence across all consumer touchpoints,” stated Pankaj Ghai, managing director of Asia Environmental Partners.

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