Recommerce startup Cashify, which helps in reselling used mobile phones and other gadgets, has raised nearly INR 12 crore debt funding from existing investor Trifecta Capital. For all those who are not aware, Trifecta Capital is one of the few reputable venture debt specialists operating in India’s startup ecosystem.
According to ROC filings, Cashify has allotted 242 NCDs (non-convertible debentures) at a nominal rate of Rs 5, 00,000 per debenture. Trifecta has also been allotted 80 preference shares, the filings revealed.
In another important development, the Gurugram based startup has increased its authorized share capital, which clearly indicates that it is likely to raise fresh equity funding pretty soon. As per the ROC filings, the company’s authorized share capital has increased from 97 lakhs to 1 crore. The company has infused fresh 5,000 series C3 preference shares at a nominal rate of Rs 100 each to increase its authorized capital.
Cashify’s other existing investors include Blume Ventures, Bessemer Venture, CDH Investments, Morning Side Group and M&S Partners. Although the company also provides market place for second-hand computers, laptops and desktop computers, used smartphone remains its major income driver.
Over the years the average upgrade cycle for mobile phones has come down, which should augur well for Cashify’s long term growth. According to Deloitte India report, India’s second hand phone market is likely to reach 4 crore by end of the current year.
It must be noted that the Gurugram based startup is an Omni-channel player since it also operates physical retail stores. Speaking to Economic Times in December last year, Cashify’s co-founder & COO Nakul Kumar claimed that the company was operating 44 physical stores and was aiming to increase this to 150 stores by 2020.
Some of the company’s top competitors include players like Atterobay, Togofogo and Budli.
Meanwhile, Trifecta Capital is also currently negotiating to infuse nearly INR 2 crore debt funding in its portfolio company and lingerie Zivame. Bollywood superstar Aamir Khan has also invested INR 1 crore in Zivame, marking his second investment in India’s startup industry. Techpluto has exclusively reported about this last week.
