Online cashback and coupon Web site Cashkaro.com has raised Rs 4.5 crore ($750,000) from a group of UK-based angel investors, who have investments in companies such as Gumtree, Investec and Paypal.
The firm has also got on board Doug Scott, who owns UK’s leading online company ASAP Ventures, as an investor and advisor. ASAP Ventures also owns Discount Vouchers, UK’s third largest voucher Web site.
Cashkaro is the Indian arm of UK-based Pouring Pounds Ltd, which runs various cashback Web sites there. Founded by husband-wife duo Rohan and Swati Bhargava in 2011, Pouring Pounds launched its India operations Cashkaro.com in April this year.
“The funds would be used to strengthen our position in India. It also makes us the leader in the segment,” said Swati Bhargava. Cashkaro has partnered over 350 brands such as Snapdeal, Myntra, makemytrip, Dominos and Tradus.
Though a very nascent and small market, the concept of cashback is fast catching up with Indian online retailers as it helps them reduce their cost of customer acquisition compared to traditional forms of offline and online marketing.
Besides cashkaro.com, there are players such as Pennyful.in, Cazback.in and Medicash.in, who are betting big on the burgeoning e-commerce market in India. These firms have marketing tie-ups with most e-tailers, which pay them a marketing fee, in the range of 3-5 per cent, to bag more business.
The concept is, however, quite popular in the US and the UK. The recent listing of coupon and cashback site RetailMeNot is a precedent for the immense growth potential of such sites in India, Bhargava added.