Cashback startup GoPaisa drives a crore sale for exclusive partner Flipkart within a month
GoPaisa, an online cashback platform, was founded by brothers Aman Jain and Sugam Jain in the year 2013. The inspiration to start GoPaisa came early when the founder duo used to sit at their grandfather’s ‘kirana’ (local grocery) shop in the sleepy town of Baraut (Meerut) in Uttar Pradesh. They saw how buyers used to haggle to save every penny while shopping.
“The prospect of getting a good bargain is almost like a culture in India. When e-commerce retail was on a boom, we thought of exploiting this and thus GoPaisa.com was born,” says Aman, CEO of GoPaisa.
The platform enables its registered users to avail cash back or a cash reward on their purchases from Myntra, Jabong, Expedia, Flipkart and 300 other retailers listed on the platform.
Recently, the company got a major boost after becoming the only cashback site in India offering rewards for purchases on Flipkart.com. Importantly, this is the first time when rewards on Flipkart purchases are being offered by a cashback and coupons website in the country.
“The partnership will allow us to target an even wider audience with our cashback offerings as large chunks of Indian online buyers are Flipkart loyalists. We look forward to helping Indian consumers save a lot more while they shop,” adds Aman.
Aman is a Delhi University alumnus and has a MS degree in risk management from Nottingham University, UK. Prior to starting GoPaisa, Aman worked with a leading national equity brokerage company for two years and then joined the family business.
Sugam is a techie at heart, and he is the brains behind the technology platform for GoPaisa.com. His geeky instincts at the young age of 16 helped him become an excellent webmaster, and enabled him buy a car as soon as he turned 18.
In March this year, GoPaisa users did transactions worth close to Rs.1 crore for Flipkart only. “We aim to increase this number manifold and reach Rs. 5 crores every month within the next three to four months, and finally achieve 100 crores over a year,” points out Sugam.
Close to 75% of the online shoppers visiting GoPaisa are between the age group of 20 to 30 years. “Interestingly, only 25 per cent of the active user base comprises of women,” adds Sugam. In terms of registered user base, the platform has around 1.7 lakh users with 7000 visits registered on a daily basis.
Since its inception in January last year, the startup has driven sales worth Rs 13 crores for its affiliates (merchants/partners). When it comes to margins, GoPaisa earns 3.5% to 10% commission on every conversion but it transfers 90-95% commission back to its users.
The 17-employee startup strives to get all the popular retailers on board. “In a relatively new market, we’re actively involved in expanding the visibility of the site and educating the user base about the benefits of using the cashback site.
As of now, the company is being bootstrapped by the founders and they are not looking to raise any capital in the near future. “Some investors have shown interest but we don’t need capital bolster at this moment,” adds Aman. GoPaisa plans to breakeven by middle of next year. The startup competes with Gurgaon based Cashkaro and Pennyful.in among several others.
With more than 500 to 1000 customers joining each day, the platform vows to live up to the message they share with the customers – ‘Save all-ways’.
Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.