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Havish Gupta
Figuring Out • 4m
Product: Mobile Reselling App Valuation: $290 Million Well, that's Cashify! Cashify was started by three friends who wanted to buy the latest iPhone but found it difficult to sell their old phones easily. And thus, Mandeep, Amit, and Nakul started Cashify. The business model is pretty simple. Cashify buys old phones, refurbishes them and sells them on their website or directly to retailers. Now, they have expanded into many other services, including electronic repair and reselling of almost all electronic appliances, such as TVs, laptops, ACs, fridges, etc. They claim that they offer the best value for old phones, and that’s true. For eg, an iPhone X (64GB) exchanges for ₹7,000 on Amazon and ₹7,400 on Croma. But Cashify offers ₹11,000 for the same phone, and you can get an additional ₹2,500 if you buy a new phone in return. This leads us to another question: how do they make profits then? Answer: They don't! They are still loss-making. Actually, they make money but its less. For eg, the iPhone X, which costs them ₹11,000 is sold at ₹16,000 on their website. That’s their profit. Btw so far, they have raised a total of $130 million and made $100 million in revenue with an 18% loss. Imo, Cashify, demonstrates that when people say execution is more important than the idea, it's true. Building a mobile reselling app isn’t what most people would find appealing, but thanks to their execution, they made a $290 million company.
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