CashKaro to generate Rs.1000 cr in sales for partner retailers within months.
By Pranati Deva, ET | Mar 07, 2016, 01.06 PM IST.
Goldman Sachs estimates Indian e-commerce to reach the $100 billion-mark in financial year 2020. Riding on the e-commerce boom, cashback site Cashkaro.com, has raised around $5 million with investors including Ratan Tata. Talking about the growth of the portal and its partners, Swati & Rohan Bhargava, Founders, inform that they have generated over Rs 500 crore of sales for their partner retailers in 2015.
What is the basic principle behind CashKaro? How does it work for the customers?Rohan Bhargava: CashKaro.com is basically a cashback & coupons site and works on an affiliate model. We drive quality traffic to our partner sites. Since the model is performance-based, it is also recognised as a key marketing channel for retailers. CashKaro works in excess of 1,000 websites including Amazon.in, Flipkart, Snapdeal and Paytm etc. When members visit their favorite websites via CashKaro and transact, affiliate commission is credited to us. A large part of this commission is then paid back to users as 'cashback' and, hence, makes our portal probably the cheapest to shop online.
Swati Bhargava: Till date, CashKaro has raised close to $5 million. Of that, a total of $3.8 million was raised in Series A funding from one of India's leading venture capital firms, Kalaari Capital. Recently, Tata Sons' Chairman Emeritus Ratan Tata has also invested in the company in his personal capacity - an affirmation of the opportunity that CashKaro is addressing.
You have partnered with e-tail giants such as Amazon, Flipkart and eBay. What is it for them in this association?Swati: As an affiliate site, we benefit our partners by driving quality traffic to their portals. Since CashKaro works on a performance-driven model, retailers recognise affiliate marketing as a high return on investment (ROI) channel at reduced customer acquisition cost. This unlike other marketing spends, require retailers just to pay us commission for the sales we bring to them. Hence, more and more e-commerce sites are now working with affiliate sites like us to enhance sales and branding.
Are you planning to partner with more niche sites? How do you distinguish your portal with that of competitors?Swati: We are always on a lookout to partner with more and more e-commerce sites. We want to be Asia's one stop destination for savings on online shopping. Compared to competitors, our differentiating factor is the 'extra cashback' that we offer to our customers. This makes our value proposition the best for customers. Not only does a customer get coupon savings in the form of discounted prices, but he/she also gets an additional cashback.
Rohan: Being the only VC-funded cashback site in India, our traction, relationship and commissions are higher than others companies with similar activities. We have a much larger team than our close peers, which also helps us service our customers better.
Also, Paytm is one of our partners to whom we drive sales. We give extra cashback on top of all the discounts and the cashback that Paytm gives to its users.
Having raised a funding for more than $5 million, are there any new products in the pipeline for your customers?Swati: We are currently working on extensions and derivatives of our mobile initiatives that include the launch of CashKaro app. We will continue to work in parallel to grow the recently launched product comparison ecosystem more effectively, while creating more partnerships with various other online businesses to build great synergies.
When did you partner with Flipkart, Snapdeal, Amazon and eBay? How much increase in your revenue you expected post the partnership?Rohan: We have been working with large partners like Flipkart, Snapdeal, Amazon since the inception of CashKaro.com. These sites account for over 50 per cent of the e-commerce in India. That is the kind of response we expect for our site.
Can you explain the customer base and demand on your website? Which site contributes the most in your revenue?Rohan: At present, we have over a million users. We log over 60 lakh page views per month on our site. Our user base constitutes of online savvy people, mainly in the age-group 18-35 years, which includes students who save money on recharge, books, and food, to young professionals, mothers and frequent travellers.
Swati: Delhi NCR, Bangalore, Mumbai, Hyderabad, Chennai and Kolkata are top trafficking cities for us, followed by tier II cities such as Pune, Jaipur, Chandigarh and Ahmedabad.
Our major revenue is driven by the larger e-commerce sites like Amazon.in, Paytm, Flipkart and Snapdeal. Having said that, increasingly, a lot of other sites are getting more and more traction on CashKaro.com.
What are your revenue estimates for the year 2016-17?Rohan: We generated over Rs 500 crore of sales for our partner retailers in 2015 and expect to cross the Rs 1,000-crore mark in the next few months. We also aim to credit more than Rs 45 crore as cashback in the coming months.