Over the past few years, Indian re-commerce platform Cashify has partnered with major brands such as Apple and Xiaomi to help users sell their old smartphones at fair prices. The company now handles more than 100,000 handsets per month and competes with classifieds players like OLX and Quikr.
Apple Upgrade Programme (2017)
Approved Apple affiliates in India ran upgrade plans with Cashify and ICICI Bank offering cashback on purchases of MacBook Air, Mac Mini, and MacBook Pro from authorized resellers. The offer applied to both existing Apple users and others, though non-Apple owners were less likely to realize the full Rs 30,000 cashback. Cashbacks often exceeded Rs 20,000, with Rs 20,000 effectively guaranteed in many cases.
Xiaomi Exchange Program (2017)
Xiaomi partnered with Cashify to launch an exchange program through Mi Home stores. Users could bring their old phones to a nearby Mi Home and trade them for new Xiaomi devices. Cashify determined the trade-in value (also verifiable via the Cashify app) and offered doorstep pickup, while purchases had to be completed at Mi Home stores.
Key rules included:
– Trade value set by Cashify, based on condition and market value.
– Only one phone could be traded per new Xiaomi purchase.
– The traded device had to be listed in Cashify’s catalog.
The Mi Exchange program supported Xiaomi’s retail push; Xiaomi also announced local manufacturing collaborations (with Hipad Technology) and launched products such as the Mi Power Bank 2i assembled at its Noida facility.
Funding and Growth
Cashify raised $12 million in a round led by Chinese investors CDH Investments and Morningside, with participation from Aihuishou, Bessemer Venture Partners, and Shunwei. That round brought Cashify’s total funding to about $19 million.
Beyond its website and app, Cashify sources devices through OEM exchange programs (Samsung, Xiaomi, Apple) and marketplaces like Flipkart, Amazon, and Paytm Mall. Acquired used devices are either refurbished and sold through a network of offline resellers across India or prepared for direct resale.
Product and Service Strategy
– Refurbishment and resale: Cashify plans an online resale marketplace where refurbished phones will be sold with new parts when needed, boxed, and backed by a six-month warranty.
– Repairs and pickup: The company has launched at-home repair services and offers doorstep pickup for device collection.
– Offline reseller network: Cashify works with a chain of offline traders who specialize in selling used phones across India.
Business Metrics and Margins
– Current volume: ~100,000 phones per month, with a target of 200,000 before year-end.
– Device mix: Mostly lower-end phones (sub-$300 when new).
– Margins: Affiliates can earn around 10% profit on a device. Cashify’s buy-sell margin (difference between purchase price from sellers and price offered to affiliates) is typically 30–35% before internal costs, which reduces overall realized margin.
Market Opportunity and Expansion
Cashify estimates the Indian used-phone market at about 90 million phones for the current year, rising to roughly 120 million by 2020 — comparable to India’s new-phone shipments (about 124 million in 2017) but with higher margins. The company is concentrating on India for at least the next year while exploring international opportunities in the Middle East, Southeast Asia, and potentially Hong Kong, which is a regional hub for refurbished phones.
Strategic Benefits of Partnerships
Partnerships with firms like Aihuishou and Chinese investors help Cashify with parts sourcing for repairs and refurbishments, and strengthen its supply chain and procurement capabilities. Cashify’s integrated approach — combining online valuation, pickup, refurbishment, warranty-backed resale, and offline distribution — positions it as a convenient option for users looking to sell old phones at reasonable prices.
