- Zefo is included in selling pre-owned products on its platform.
- It is set to open 200-300 franchisee stores across the country over six-nine months.
- The initial focus is on electronics, but it also plans to open large-format stores where it can sell used cars and bikes.
Quickr the e-classified marketplace acquired online pre-owned goods seller startup Zefo in a Rs 200-crore for a business of stock-and-cash deal as it looks to ramp up the business in the segment. The deal comes from the Bengaluru-based company to be valued at $1.6 billion so, it is looking at an aggressive offline expansion with plans to open 200-300 franchise stores across the country over six-nine months.
“In the last 1.5 year, we have found the best way to grow this category to a mix of pure consumer-to-consumer and we also sell products which we have possession of. It is a high-margin space and we have been seeing 100% year-on-year growth,” said Quikr founder and CEO Pranay Chulet.
Zefo is included in selling pre-owned products on its platform and the product categories include products like televisions, mobile phones, furniture and much more. The addition of Zefo to Quikr was already having a very strong lineup and it will definitely prove beneficial to both the startups in enhancing their customer base.
The pre-owned products market in India is expected to reach up to $12-15 billion by 2020. The refurbished goods are sold under the QuikrBazaar platform with vertical, and with quality control with Quikr Assured label, and with Zefo its first acquisition in the space.
Zefo had raised total funding of about $19 million in the venture capital funding from backers like Sequoia Capital India and Helion Venture Partners. Zefo was co-founded by Rohit Ramasubramanian, Arjit Gupta, Karan Gupta and Himesh Joshi in 2015, the company located in Bengaluru, Delhi-NCR, Mumbai and Hyderabad with over 10,000 unique products.
The development comes when around 25 franchise stores of Quickr have opened already and Quikr looking to provide consumers with a touch and feel of products. The initial focus is on electronics, but it also plans to open large-format stores where it can sell used cars and bikes.
“While it is still early days for franchisees, I will not be surprised if one-third of the business in two-three years comes through these offline stores,” said Chulet.
Quikr India total revenues rose 95% to Rs 173 crore in FY18 as compared with the previous year of Rs 89 crore, according to financial documents filed with the Registrar of Companies. Losses came down to Rs 233 crore from Rs 324 crore during the same period. The company has raised over $400 million till now from investors like Tiger Global Management, Kinnevik, Matrix Partners India and Norwest Venture Partners.