Cashify Rides on Demand for Premium Category of Phones, Eyes IPO by FY28 Cashify currently has about 200 offline stores that also act as customer service points. As part of its expansion plans, it aims to double the number of stores to 400 in the next 2-3 years.

Re-commerce marketplace Cashify is riding on the surge in demand for premium category of refurbished phone brands such as iPhone, Samsung Galaxy, and One Plus to boost growth at a time when it plans to make its debut in the primary market by FY28.

"We are seeing a trend towards premiumization with the average selling price of phones going up from INR 10,000 to INR 23,000. 95 per cent of our business comes from smartphones category today," Mandeep Manocha, Co-Founder and CEO, Cashify told Entrepreneur India.

As part of its expansion plans, Cashify plans to extend its portfolio this year to other premium offerings in the laptops, smart watches (Apple Watch), and tablets category (iPad), Manocha said. "We have plans to enter categories like cameras and other luxury segments too but that's at a later stage."

The premium segment of smartphones continued to thrive in 2023, with a notable increase of 64 per cent YoY in sales of smartphones priced above INR 30,000, according to a Cashify study. Brands like Apple and Samsung dominated this space. For the first time ever, Apple held the first position in India in terms of revenue and shipped over 10 million units in the Indian subcontinent, fuelled by excellent trade-in offerings, its own stores and large-format retail.

One of the key drivers of refurbished goods market in India, Manocha said, is the country's young workforce with high aspirations. The affordable financing options also help people fulfill their aspirations of owning a flagship smartphone, the study revealed.

Cashify currently has about 200 offline stores that also act as customer service points. As part of its expansion plans, it aims to double the number of stores to 400 in the next 2-3 years. "Opening 60-70 stores a year is a sustainable plan," Manocha said. "Building trust with the customers is very important and these stores help in that."

Cashify's revenue from operations increased to INR 935 crore in fiscal year ended March 2024, from INR 817 crore in FY23 and reduced its losses by 63 per cent. "This fiscal year (ended March) we will be a profitable company on a full-year basis," Manocha said.

Cashify has raised a total funding of USD 140 million over 8 rounds since inception, according to data from Tracxn. Its latest funding round was a Series E in June 2022 for USD 90 million. On plans to raise more funding, Manocha said, "Given that we have now turned profitable on a monthly basis, we don't have immediate plans for raising more funds. But over a period of 2 years, when we decide to go public, there could be 1-2 new rounds."

In terms of workforce, Cashify currently employs about 2,100 people across its various functions in India. "We are hiring aggressively for our upcoming stores, at least 600 people in retail. Basically, in the next 2-3 years, we will add another 1,000 people to our workforce," Manocha said.