The boom in e-commerce has been a driving force behind the success of cashback and coupon platforms, with startups in this sector gaining traction and customer engagement. CashKaro, founded in 2013, experienced remarkable growth, achieving over a two-fold year-on-year increase in the recent fiscal year. Co-founder Swati Bhargava revealed plans to diversify offerings from credit cards to include loans and other financial instruments, identifying a significant opportunity in the Indian market.
While emphasizing that profitability is within reach, Bhargava stated that the company is currently prioritizing growth over immediate financial gains. In the fiscal year 2023, CashKaro closed revenue at ₹252 crore with losses of about ₹10 crore. Despite the losses, the company recently raised ₹130 crore and aims to actively deploy it for branding and other initiatives.
CashKaro has also made substantial contributions to its partners, disbursing nearly ₹7,000 crore in cashback and generating around ₹16,000 crore in sales over the past four years. In a year where startup funding experienced a downturn, reaching a five-year low with a total of $8.6 billion raised, CashKaro’s success stands out as it continues to focus on growth.
As the e-commerce landscape evolves, startups in the cashback and coupon sector are positioned to capitalize on the shift in consumer behavior. The strategic move by CashKaro to expand its offerings beyond credit cards aligns with the changing financial needs of consumers, presenting an opportunity to tap into additional revenue streams.
While challenges exist in the competitive startup ecosystem, CashKaro’s commitment to delaying profitability in favor of driving growth reflects a strategic approach to solidifying its position in the market. The company’s performance and diversification efforts underscore the resilience and adaptability required for success in the dynamic world of e-commerce and fintech.
