CashKaro, a Gurgaon-based cashback & coupons portal has announced it securing $3.7 million in Series A round of funding led by venture capital Kalaari Capital.
Founded in 2012, the startup site CashKaro offers cash discounts to people who buy things online through its website and has tied-up with more than 500 e-commerce sites like Amazon, Jabong, Flipkart and Paytm, partnered on its platform. The startup 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. Being one of the first company in this segment, it recently crossed $1.5 mark in cashback payments and hopes to cross $3.5 million mark in the next 9 months.
With the fresh funds, CashKaro plans to invest in widening its services and operations to Russia, Singapore, Malaysia and the Gulf countries. Also, it plans to improve its features on the site. Swati Bhargava, CEO at CashKaro said, “We will use the money for international expansion in markets like Indonesia, Singapore and other nations in southeast Asia.”
After working for five years in Goldman Sachs, London, Swati started cashback business in UK called PouringPounds with her husband Roshan. After UK’s success they expanded to India as Cashkaro.com.
Regarding the development, Swati and Rohan Bhargava said, “Affiliate sites account for 15%-20% of ecommerce sales in India and because the model is performance based it is also recognized as a key marketing channel for retailers. With infusion of these funds, we plan to take CashKaro to new markets and pursue an aggressive customer acquisition strategy while focusing on extending our mobile initiatives including launching the CashKaro mobile app.” The app would be soon launched in Android and iOs platforms in 2016.
Other players in this sector includes Cuponation, Couponchaska, Mydala, PennyFul and Times Internet-backed Coupondunia. Mydala is in talks to raise $80-90 million round. Worldwide, it is billionn-dollar business Ebates.com, largest US cashback site was recently acquired by Rakuten for $1 billion.