Mumbai: Manak Waste Management Pvt. Ltd, a Gurgaon-based online seller of used electronic goods that operates as Cashify, has acquired Bengaluru-based MobiBing (Innowhiz Online Services Pvt Ltd.) in a cash and stock deal whose value wasn’t specified.
The purchase, announced in a statement, is an acquihire—a transaction in which the buyer’s aim is mainly to gain access to the target company’s workforce.
Founded in 2013 by Mandeep Manocha and Nakul Kumar, Cashify, formerly known as ReGlobe, aims to increase and strengthen its presence in south India. The acquihire will help Cashify access more users and build a stronger network in the region.
MobiBing is a marketplace to buy and sell overstock, refurbished and un-boxed gadgets that was founded in 2015. Its entire team will be now be a part of the Cashify team, MobiBing’s founder Sibgathulla Zeeshan heading operations in Bengaluru.
Cashify is a marketplace for a user to sell old or used gadgets.The company runs exchange buyback offers for original equipment manufacturers (OEMs), e-commerce and offline retailers.
Backed by investment firms Bessemer Venture Partners, Blume Ventures, and M&S Partners, Cashify will be raising its next round of funds to expand in east India. It is also looking at acquisition of companies in the gadget warranty and insurance space.
The company claims to be recording 20,000 transactions a month at a growth rate of 15%-20% month on month, with 500 active vendors out of 800 registered vendors creating demand. Cashify earns a commission of 5-15% per transaction depending on the device.
In the next one year, Manocha said he expects to increase the per month transaction to 100,000, with 2,000 active vendors. While a user can sell any gadget like a laptop, television, washing-machine, 85% of transactions is of smart phones, bearing an average ticket size of Rs.4,000- 5,000.
Manocha estimates this market to be worth $100 million India-wide, out of which $30 million is traded online.