Quikr, which went on an acquisition spree last year, taking over companies in business segments it has interests in, has now added Zefo, in an all-stock deal. The transaction is reportedly worth Rs 200 crore, though this figure has not been officially confirmed by either parties to the deal.
Zefo is into selling refurbished products on its platform and the product categories include televisions, mobile phones, and furniture. The addition of Zefo to Quikr’s already strong lineup will definitely prove beneficial to both the startups in enhancing their customer base.
The concept of offering refurbished pre-owned products in nothing new, but in a largely conservative market like India, it has been slow in take-off. Zefo, for example, is so far present in only 4 cities in the country. The logistics involved in the business also dictate a more cost-conscious approach. Picking up the old stuff and taking to a location for carrying out the repair and refurbishing and then making the delivery all add up to the expenses and the expectation among the buyers can be unreasonable as far as the prices of pre-owned goods are concerned.
The modern trend of online platforms creating an offline presence is observed here as well. Quikr has opened up a couple of stores in Karnataka and Telangana already to physically showcase its refurbished products. Many customers may prefer to first try out the offline mode before trusting the online way of buying products.
The company says it plans to double the manpower engaged in areas like quality assurance process, logistics, marketing, and retail. These will cover almost all the product lines, in particular, for the furniture, electronics & appliances and mobile categories.
Zefo had so far raised around $20 million, Sequoia Capital being the largest investor while Quikr has raised as much as $370 million. Investors in Quikr include Tiger Global Management, Steadview Capital, Norwest Venture Partners, Warburg Pincus and Matrix Partners.