Elaborating on the business, Swati Bhargava, Co-founder of CashKaro, says the platform has increased the number of partners it deals with to 1,500 and it has now become a place for consumers to discover new brands.
Two years ago, the company launched EarnKaro, a social cashback app. Bhargava says that has also taken off well. “We have got exclusive agreements with top Telegram creators, with housewives, Facebook group owners, with WhatsApp group owners, students and others who use the platform to make affiliate links for themselves for any e-commerce product, and they share it on their WhatsApp groups and if anyone buys via the link, they earn money,” says Bhargava.
As people look for work-from-home options and additional income, it has given them an opportunity to monetise their influence, she says.
The third business that the company launched last year is the CashKaro store network. It has inked partnerships with about 25,000 kirana stores all over India to collect orders from their walk-in customers and they place them online via the platform. A store owner who keeps placing orders via CashKaro gets cashback. “So, their incomes have gone from like Rs 10,000 a month to Rs 25,000-30,000 a month and that is the kind of impact that CashKaro has had in their lives. For our partners, the platform gives them the rural reach and a means to find new online shoppers from tier-III and -IV towns of Bharat. So, as a result, most of our partners are willing to pay us higher commissions for business that we bring from the store network.”
The expansion has helped CashKaro clock a revenue of about Rs 225 crore. “Our losses right now are less than Rs 10 crore per year. We think we will be able to break even in two years, even though we are scaling up on most fronts. Actually, we are profitable in many months of the year. But in some months, we do more marketing, which is why we incur some losses. Otherwise, we can actually be a profitable business almost any month we want, because we can anyway recover all our costs from our business,” says Bhargava.
The company says at the moment, about 30% of its business comes from the EarnKaro and CashKaro Store Network combined and 70% from CashKaro. Bhargava adds that GMV has grown 80%, revenue has increased by 100% and losses have come down compared with FY21. The company aims to clock revenues of Rs 350-400 crore this financial year.
CashKaro is also branching into new areas. “We have three new projects launching this year; two of them we are still sort of processing all the details, but the one that we can talk about is called BankKaro,” says Bhargava.
BankKaro is a product that will give cashback on credit cards, on short-term personal loans, and on other kinds of financial instruments. “Through CashKaro, we know what kind of customers may require what kind of a financial product. So we can marry the two. BankKaro is a fulfillment platform where we will direct CashKaro customers to fill their digital applications. The idea is that we are launching cashback on financial instruments, and this is something that we have seen has done really well for other cashback sites globally. We do not have to call people randomly and ask them if they want a credit card. They are already CashKaro members, we know what their spending patterns are like, we know what can help them, so marrying some of that data algorithm will help us in good conversion,” says Bhargava.
The company currently has a headcount of 350, which it plans to ramp up to 550-600 by the end of this year.
On the horizon, Bhargava says the company would definitely want to do an IPO. “I think our business can certainly do an IPO because it has good unit metrics. But I think we still have some time for that because we would like to do an IPO when we reach maybe Rs 600-700 crore in revenue. Right now, we are at Rs 225 crore, which means we have a bit of time to go,” adds Bhargava.