In India today, the term “cashback” may imply anything from a discount offered during purchase to the use of a coupon. The concept of cashback is skewed in the mind of consumers as they always expect “terms and conditions” to apply. But, what does cashback actually imply? One would assume that cashback means, well, cashback!Pennyful.in, founded by Ravitej Yadalam, offers shoppers cashback in the true sense of the word. The young engineer from Bangalore started Pennyful in the United States with the idea of giving away real cash on customer purchases. After succeeding in partnering with 2,500 companies in the US market, Ravitej went on to start Pennyful.in for India in late 2011.
Pennyful now aims to reach out to consumers in India by offering actual cashback via cheque or bank transfer. Once a customer’s Pennyful cashback account reaches 150 INR, they are able to request their cash. The website currently has over 100 online partners and is in the nascent stages of collaborating with offline stores, given the large market potential in this space.
The company acquires partners by reaching out to potential brands that they would like to be associated with. This approach has enabled them to reach 30 million products in the Unites States in less than two years. According to Ravitej, “The large number of products is a result of being associated with some of the largest online retailers in the world.”
Pennyful was self-funded by Ravitej using three to four lakhs, and now works with a revenue model in which merchant partners only pay for actual sales generated. The enthusiastic team is currently adding new members to their highly energetic environment every day.
In the future, the team plans to expand their user base in India. “With India adding an astonishing number of internet users every day, there is tremendous opportunity for us to grow,” said Ravitej.
Written by Zachary Zahorka