Gurugram-based CashKaro, a cashback and coupon service, has seen its revenue rise to Rs 249 crore this year. This is a 15.28% increase from last year's Rs 216 crore. The startup, which is backed by Ratan Tata, experienced slower growth compared to its previous rapid expansion.
CashKaro's business model
Cashkaro operates several apps like CashKaro and EarnKaro, offering deals and cashback for online shopping. The startup partners with big e-commerce brands, including Flipkart, Amazon, Tata 1mg, and Myntra, contributing to a significant sales volume.
Partnered brands pay commission for every transaction driven, and CashKaro passes a large portion of this as cashback to consumers in the form of brand gift vouchers.
This year, It reported a gross merchandise value of Rs 4,500 crore, boosted by expanding into new product categories and increased sales in electronics and travel, Entrackr reports.
Expenses and advertising
CashKaro's biggest expense is the cashback it offers to customers, which slightly decreased this year. However, their spending on advertising went up by 20.8%, and overall expenses rose to Rs 263 crore. This includes costs for employee benefits and other operational expenses.
Reduction in losses
Despite the modest revenue growth, CashKaro managed to cut down its losses to Rs 11 crore from Rs 15 crore last year. It's worth mentioning that the reduction in loss improvement is a positive sign, showing better financial management and efficiency.
In November 2022, It raised Rs 130 crore in a Series C funding round led by Affle Global Pte. Ltd. (AGPL).
Join our new WhatsApp Channel for the latest startup news updates