CashKaro is a one stop destination for online savings where members get the DOUBLE benefit of Cashback + Coupons. CashKaro works on an affiliate model wherein we earn commission for every sale/transaction that we drive to any retailer partner by promoting its product, offers etc. A large part of this commission is then shared with our members as Cashback. Since CashKaro works on a performance driven model, retailers recognizes Affiliate Marketing as a high ROI channel at reduced customer acquisition cost in comparison to other marketing spends –retailers only need to pay us commission when we drive a sale.
This is how CashKaro works for a user-
- Create an account with CashKaro.com.
- Choose the retailer you want to shop at from the wide choice of retailers given on Cashkaro.com or chose the section of your choice (fashion, mobile, travel, electronics, books, restaurants, etc).
- Once you click out of the retailer’s page through CashKaro.com you will be redirected to the retailer website.
- Shop as normal and cash back will automatically get added to your CashKaro account
- You can Redeem this CashBack in two ways:
- CashKaro can NEFT it to you, directly to your account.
- CashKaro can give you Amazon/FlipkartGift vouchers for the same.
What made you come up with this concept?
With a fast growing e-commerce market which is expected to be a $100 Billion industry by the year 2020 & Indians innate love for savings convinced us to the idea of launching a CASHBACK site in India. Cashback as a concept is very popular and successful in the West so that served as a great example for our venture in India. India is a great market for us. In fact, India being a larger market overall and a population of people who are likely more price conscious means that the scope for growth here is even greater. Also, daily deal sites only provided savings on bespoke experiences, massages, restaurants etc. but not everyday savings so Cashback was a great model to get into.
How is CashKaro different from its contemporary sites?
Visiting a Cashback site has now become a default shopping gear but when we started out it was still a novelty in India. I feel that our first-mover advantage has helped us stay far ahead in the Indian Cashback ecosystem and are 3x to 10x larger than other cashback sites. We have now evolved from a Cashback Coupons only site to a singular platform where users can SEARCH, COMPARE PRODUCTS & PRICES AND EARN EXTRA CASHBACK over and above coupons across retailers. This added features help the user in making an informed purchase and save every time making CashKaro.com the cheapest way to shop online.
Can you share the key metrics of your site?
Currently, we have over 10 Lakh registered users on our site while we drive approximately 10,000 transactions per day for our partner sites. Our userbase constitutes online savvy people in the age-group 18-35 years and many students who save money on recharge, books, and food to young professionals, mothers, and frequent travelers. Our members largely come from Delhi, Bangalore, Hyderabad, Mumbai, Pune, Chennai, Kolkata and an increasing number from Tier 2 and Tier 3 cities like Jaipur, Chandigarh, Bhopal, and Lucknow. The demand is primarily driven by deal-savvy online shoppers who are always on a lookout for discounts and ways to save on their regular online shopping across categories like groceries, fashion, electronics, gifts, etc.
Tell us the funding status of CashKaro.
In 2013, when Cashkaro made its foray into India, it raised its first round of (seed) funding to the tune of US $750,000 from a group of UK-based angel investors. In November 2015, CashKaro raised a Series A to the tune of Rs. 25 crore from Kalaari Capital, India’s leading Venture Capital firm. The last round of funding was received in January 2016 when Tata Sons’ former Chairman, MrRatan Tata invested in CashKaro in his personal capacity.
How do you see the market in India for CashKaro? What are the growth opportunities?
For a growing E-commerce market like India, the potential for Cashback sites is huge because you are in effect, taking a small percentage of the entire E-commerce spend in India. As per studies by Forrester Consulting and Google search trends, number of online shoppers in India is projected to reach 100 million and the country’s e-tailing sector will become a $25 billion market by 2017.
These are not small numbers to start with, and will only grow more from here on. Aspects like Cash on Delivery, young population of India, increasing internet penetration, growth in T2 and T3 cities will further propel this growth. So this is the right time for a Cashback business like CashKaro to establish its foothold in India and be instrumental in contributing to this growth by providing a) an effective and high ROI way of driving sales to e-commerce brands or retailers and b) incentivizing people to shop online by way of discounts & savings.
Moreover, Cashback sites globally have done really well. Sites like Ebates in the US and Quidco.com in the UK have gross revenues of over $100 million and are valued at much more. So the model is tried and tested. When you apply this to the India market the opportunity is encouraging! We value money and why won’t we want to save money when it is so easily possible.
What next for Cashkaro? What will be the key growth drivers for the company going forward? And, where do you see the company three years from now (in terms of reach and impact)?
The e-commerce industry in India is expected to be $100 Billion industry by 2020 and similar progress is forecasted in the Cashback space. According to reports, the affiliate sites such as ours contribute to 12-15% of total e-commerce sales in India today.
Over the next 3 years, our efforts will be towards solidifying and cementing our market leader position in India in the Cashback & Coupons space. Also, we will be looking at expanding our presence in South-East Asian countries.
In the near future, we will primarily be working on extensions and derivatives of our MOBILE initiatives including launching the CashKaro app. We’ll continue to work in parallel to grow the recently launched product comparison ecosystem while creating more partnerships with various other online businesses to build great synergies.
@Technuter.com News Service