CashKaro, a leading cashback and coupons app in India, has announced its financial performance for the fiscal year ending March 2023. The company, which is backed by veteran industrialist Ratan Tata, has recorded a 15% growth in revenue and a 26% decline in losses, showing signs of resilience and profitability in the competitive e-commerce market.
How CashKaro works and what it offers
CashKaro is a platform that offers cashback and rewards to its users for online shopping. The company has partnered with over 1,500 e-commerce brands, including Amazon, Flipkart, Myntra, Nykaa, Tata 1mg, boAt, and Mamaearth, among others. Users can browse through various deals and coupons on the CashKaro app or website, and earn cashback on every purchase they make through the platform. The cashback can be transferred to the user’s bank account or redeemed as gift cards.
CashKaro also operates other apps such as EarnKaro, CashKaro Stores, and BankKaro, which cater to different segments of online shoppers. EarnKaro is a social commerce app that allows users to earn money by sharing deals with their friends and family. CashKaro Stores is a hyperlocal app that connects users with nearby kirana stores and pharmacies. BankKaro is a fintech app that helps users compare and apply for credit cards, loans, and insurance products.
CashKaro’s financial performance in FY23
According to its consolidated annual financial statements filed with the Registrar of Companies, CashKaro’s revenue from operations increased by 15.28% to Rs 249 crore in FY23 from Rs 216 crore in FY22. The company attributed the growth to the expansion of new categories, ad campaigns, and uptick in sales of mobiles and electronics and surge in travel bookings.
The company also claimed that it recorded a gross merchandise value (GMV) of Rs 4,500 crore in FY23, which means that it facilitated transactions worth that amount on its platform. CashKaro’s GMV grew by 50% from Rs 3,000 crore in FY22.
CashKaro’s total expenditure also increased by 12.88% to Rs 263 crore in FY23 from Rs 233 crore in FY22. The major cost drivers for the company were the cashback provided to the customers, which amounted to Rs 137 crore, and the advertising and promotion expenses, which amounted to Rs 58 crore.
However, the company managed to reduce its losses by 26.67% to Rs 11 crore in FY23 as compared to Rs 15 crore in FY22. Its return on capital employed (ROCE) and EBITDA margin improved to -6.4% and -2.8% respectively. On a unit level, the company spent Rs 1.06 to earn a rupee in FY23.
CashKaro’s future plans and challenges
CashKaro is one of the few profitable companies in the Indian e-commerce space, which is dominated by giants like Amazon and Flipkart. The company has raised over Rs 250 crore since its inception in 2013 from investors like Kalaari Capital, Ratan Tata, Korea Investment Partners, and Affle Global Pte Ltd.
The company is aiming to achieve a 30-40% jump in revenue to Rs 350–375 crore in FY24. It is also planning to launch new products and services, such as a personal finance app, a video content platform, and a social shopping feature.
However, the company also faces several challenges, such as the competition from other cashback and coupon platforms, the dependence on the commission rates offered by the e-commerce partners, and the regulatory uncertainties in the e-commerce sector. The company will have to innovate and diversify its offerings to stay ahead of the curve and retain its loyal user base.
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