Mumbai: Mumbai-based coupon company CouponDunia Media Pvt. Ltd. said on Thursday that it had entered the cashback business, and plans to spend Rs.15 crore on marketing and brand building initiatives over the next three months.
“Transition to a cashback business is a natural progression for a couponing company. The couponing business brings in the users and the cashback creates stickiness,” said Ankita Tandon, chief operating officer at the company, over the phone.
The company, which has 10 million users per month, currently records a gross merchandise value of Rs.1,000 crore and it is looking to touch Rs.4,000 crore by end of this year.
Coupondunia gets a marketing fee from retailers that it passes on to the end consumer. It makes a commission of between 4-5% on a transaction, 50-75% of which goes back to the user.
“Users can use a coupon to get a discount and can additionally get cashback in their coupondunia accounts that can be transferred to partner wallet companies, bank accounts or to do mobile recharges and payments,” adds Tandon.
Currently over 2000 brands have tied up with Coupondunia and around 250 provide cashback to its users. Additionally, the company has also launched a browser extension for Google Chrome that gives users quick access to cashback offers, coupons, deals, and price comparison.