 "CashKaro receives Rs 25 crore in series A funding from Kalaari Capital")
Online cashback and coupons site CashKaro has scored its latest batch of funding – Rs 25 crore (approximately $3.8 million) in a series A round from Bengaluru-based Kalaari Capital, marking the first time a local VC firm has invested in a cashback-oriented start-up.
The vote of confidence from Kalaari is promising – it has previously invested in Snapdeal and UrbanLadder – and also indicates a unique aspect of India’s tech market. While group-buying sites, most notably Groupon, have been in a slump since 2011, markets like India and China have been working well with online coupons.
Started in 2013, CashKaro is the product of founders Swati and Rohan Bhargava’s previous experience with London-based Pouring Pounds, which involves the cashback concept.
Swati and Rohan, based in Gurgaon, India, plan to use the money for global expansion, particularly in Indonesia and Singapore. Android and iOS apps are also in the works, slated for release in 2016.
Different from sites that just offer discounted deals, CashKaro links its customers to over 1,000 partner retailers and helps customers save on their purchases. The ‘cashback’ is a portion of the sale refunded into the consumer’s mobile wallet, which can then be used to top up mobile credit, pay bills, or buy other items on the cashback site. The goal of a cashback site therefore focuses less on simply attracting customers and more on retaining them. CashKaro’s affiliates include some familiar names, including Amazon India, Myntra, and Snapdeal.
“Affiliate sites account for 15 to 20% of ecommerce sales in India, and because the model is performance-based, it is also recognized as a key marketing channel for retailers,” say the founders.
