Pranay Chulet, founder and CEO, Quikr said the acquisition of Zefo is in-line with the consumer acceptance of the Assured products and services on the firm’s platform.
Online classifieds platform Quikr announced on Thursday it has acquired Zefo — an online marketplace specialising in selling refurbished TVs, mobile phones and furniture — to further scale its pre-owned goods business. The company did not disclose the cost of the transaction but said it was a 100% acquisition and that both companies will continue to operate separately.
Zefo, which was founded by Rohit Ramasubramanian, Himesh Joshi, Karan Gupta and Arjit Gupta in 2015, has operations in Bengaluru, Delhi-NCR and Mumbai while it also services Mysore, Pune and Hyderabad. According to its website, Zefo raised $1 million from Helion in October 2015 following which it raised another $6 million from Sequoia in July 2016.
Pranay Chulet, founder and CEO, Quikr said the acquisition of Zefo is in-line with the consumer acceptance of the Assured products and services on the firm’s platform. “Generally, a pre-owned product’s price can be as low as 30-60% of a new one. Now, with Quikr and Zefo as a combined entity, we will be able to offer a broader selection of products at even more competitive prices along with as strong a focus on quality,” he pointed out.
Quikr, which services over 20,000 pin codes across the country in about 1,200 cities, has five verticals — QuikrBazaar, QuikrJobs, QuikrHomes, Quikr Cars & Bikes and QuikrEasy. QuikrBazaar became the company’s fourth vertical to turn cash flow positive.
The acquisition of Zefo is seen as a major step towards strengthening the company’s Assured business under the Bazaar vertical. Sarath Chandra Gudlavalleti, vice president at QuikrBazaar told FE over a phone conversation that Zefo brings in a strong focus on quality assurance.
“We have been in the market for more than a decade now and have our own strengths in terms of the brand. Zefo has had a sharp focus on the e-commerce and refurbished business for a while. They have built a lot of strength in operations, and quality-testing. That’s what we are going to leverage,” he said.
The firm had launched “Quikr Assured” products and services around the second half of last year. Quikr Assured refurbished products are available in categories such as furniture, electronics, and appliances. The firm claims that all products in the Assured offering are checked for quality, come with a full warranty and replacement guarantee along with doorstep delivery options from Quikr. This business has grown 230% on a year-on-year basis for the fiscal year 2019.