The deal said to be worth around $28.5 million (INR 200 crores) will see Quikr add Zefo to its growing list of acquisitions in India. Both the companies are in advanced talks of an all-stack deal, reports Economic Times, citing sources in the know. Zefo will continue to operate as an independent entity post the acquisition, and will not merge with Quikr’s goods vertical QuikrBazaar.
Founded in 2015 by Arjit Gupta, Himesh Joshi, Karan Gupta and Rohit Ramasubramanian, Gurugram-based Zefo specialises in buying and selling of used and refurbished goods; mainly furniture. After setting up shop in Bengaluru in 2015, Zefo raised $1 million from Helion Venture Partners and subsequently launched in Delhi. Sequoia Capital invested $6 million in 2016, followed by the Mumbai launch and entry into several other major Indian cities.
Zefo lists unboxed furniture and appliances that are factory seconds, surplus stock, slow-moving inventory, as well as used, refurbished goods that are fully functional. Before the company sources the product, a complete inspection is carried out to ensure quality standards. After subjecting the product through a cleaning process, it is then listed for sale on the website. Instant quotes, upfront cash and convenient pickup are some of Zefo’s services on offer.
Since the news of Quikr acquiring Zefo broke out, conflicting reports have emerged, denying talks of acquisitions. As per information elicited by Inc42, Zefo called the deal a mere speculation and Quikr declined to comment. However, a verticalization strategy that has brought 14 startups under Quikr’s wing is making the deal a strong possibility.
Zefo has carved out a niche in the refurbished mobile phone market, which will put Quikr in a better position to tap into a market dominated by its biggest rival OLX India. The latter raked in great profits through the sale of refurbished mobile phones in the last fiscal year. Goods vertical QuikrBazaar registered 200 percent year-over-year growth in November, last year. On the acquisition front, Quikr landed India Property, a leading full-stack real estate portal, later in December.