Online cashback and coupon site CashKaro.com has raised Rs 25 crore in Series A funding from venture capital firm Kalaari Capital.
Launched in August 2013, Gurgaon-based CashKaro works on an affiliate model with ecommerce sites such as Amazon, Snapdeal and Shopclues, among others.
The company had earlier raised USD 750,000 in 2013 in angel funding from a group of investors based in London who belong to companies like Paypal, Investec, Goldman Sachs etc, some of whom have also participated in this round.
Cashkaro said it will use the funds raised to expand internationally and upgrade technology.
“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,”Swati & Rohan Bhargava, Co-founders, CashKaro.com said in an official release.
The company claims to have credited over Rs 20 crore as cashback to users on it website and had acheived over Rs 500 crore in GMV and is growing at over 30% month on month.
“With the recent infusion, we expect to cross Rs 1000 crores in GMV and credit more than Rs 35 crore as Cashback in the next few months,” they added.
India’s growing online cashback and coupon business relies on net margins ranging from 2 per cent to 3 per cent for redirecting traffic to ecommerce sites and converting it into purchases through coupons, price comparison and cashback schemes.
“The ecommerce market in India will grow upwards of USD100 billion over the next decade. There are billion dollar cashback businesses globally and we believe CashKaro can achieve similar scale in Asia,” Rajesh Raju, MD at Kalaari Capital, said.
In cashaback and coupon space, CashKaro competes with the likes of Cuponation, Couponchaska, PennyFul and Coupondunia, among others.