Anticipating Profit Prospects in FY26, as per Cashify
Cashify Bucks Trend, Projects 20% Revenue Growth Amid Market Contraction
India's re-commerce platform, Cashify, is defying the contraction trend in the organized refurbished smartphone market by projecting a 20% revenue increase to Rs 1,150 crore (INR 11.5 billion) for the financial year 2025 (FY25). This growth comes alongside significant improvements in operational profitability, as Cashify's EBITDA turned positive in FY24, signalling improved operational profitability.
The company, co-founded by Mandeep Manocha, aims to be fully profitable by the end of FY26. This ambitious goal suggests strong cost controls and efficient business model execution, setting Cashify apart from the broader market, which is experiencing a volume decline of around 5-7% in 2025.
One of the key reasons for Cashify's success is its operational efficiency and scale. The company's established platform likely retains consumer trust for quality and warranty, helping it maintain and grow revenue despite market headwinds. Cashify's strong brand and organized platform positioning are likely to be significant factors in its ability to capture a growing share and improve financials in FY25.
Another factor contributing to Cashify's success is the market opportunity in the recommerce growth. Although the refurbished smartphone segment is contracting, the broader recommerce market in India remains on a growth trajectory, projected to reach $5.91 billion in 2025 with an 11.7% CAGR, driven by platform expansion and circular retail.
Cashify is not limiting its focus to smartphones. The company is widening its focus to include other high-value electronics such as DSLR cameras and premium audio equipment. Cashify has also set up a dedicated laptop refurbishment facility in Noida, signalling its intentions to expand beyond smartphones.
To further expand its sourcing channels, Cashify has partnered with major retail chains like Croma, Vijay Sales, Reliance Retail, Sangeeta Mobiles, and Poorvika. The company is also building a B2B pipeline by targeting large corporations that retire IT assets every few years, such as TCS, Infosys, Deloitte, and PwC.
Despite industry-wide challenges from changing consumer buying channels and supply shifts, Cashify's scaling, efficiency, and strong market positioning enable it to capture a growing share and improve financials in FY25. The company's losses are estimated to shrink to Rs 10 crore in FY25 from Rs 53.3 crore in the previous fiscal.
In summary, Cashify's success amid the market contraction is due to its operational improvements, trusted organized platform offering in a still-growing recommerce market, and strategic positioning to capitalize on evolving consumer behaviours that disadvantage less organized players.
- Cashify's strategic decision to venture into sectors beyond smartphones, such as DSLR cameras and premium audio equipment, demonstrates a forward-thinking approach in the finance and technology market.
- While the refurbished smartphone segment in the broader market is facing a contraction, technology companies like Cashify are leveraging the growth in the recommerce market to improve their financial standing, as projected for FY25.
- Despite the challenges posed by shifting consumer buying patterns and supply issues in the banking and finance sector, Cashify's growth strategy, focusing on operational efficiency, market positioning, and strategic partnerships, is allowing the company to capture a growing share and increase revenue in the upcoming financial year.
