Cashify: Supporting the Transition Towards a Circular Economy

Cashify, a start-up incorporated in 2013, is a reverse commerce (re-commerce) company in India with first-mover advantage in the re-commerce of electronic goods. In its contribution to the circular economy (CE), it claims to handle 100,000 used smart phones a month and plans to grow the figure to 200,000 by 2023. The company contributes to the CE by adding value to used electronic devices, particularly smart phones, and extending their lifespans. This ensures that products enter into repeat economic transactions before finding their way to landfills. However, the re-commerce model that gave Cashify a competitive edge became obsolete in 2022 because of emerging competition that leveraged technological advancements to create value in the sector. The company’s founders now find themselves facing difficult questions: Should they include new electronic products in their portfolio? In 2022, after two years of COVID-19-related impacts on the economy, overall circular growth was slipping, as consumers preferred to buy new products instead of recycled, refurbished, and reused goods. Can consumers be incentivized to return to the CE and appreciate the value of remodelled goods? Should the company diversify into new products entirely, including automobiles, home appliances, textiles, apparel, and plastic packaging?

This case is best suited for graduate and executive-level courses on e-business, operations management, sustainable operations management, sustainable business strategy, and entrepreneurship in general. After working through the case and assignment questions, students will be able to do the following:<ul><li>Understand the CE and its implications for business, particularly in the context of the electronics industry.</li><li>Critically evaluate Cashify’s business model and subject it to a strengths, weaknesses, opportunities, and threats (SWOT) analysis.</li><li>Analyze Cashify’s options for leveraging growth opportunities in a competitive market.</li></ul>

• Circular Economy, re-commerce