Detel’s refurbished devices unit PreLoved Device has announced the acquisition of Delhi-based refurbished goods platform Overcart in a cash and stock deal.
Talking to Inc42, Yogesh Bhatia, founder, PreLoved Device said that post-acquisition Overcart will be operated under the PreLoved Device brand name. Under the deal, the entire team of Overcart will be joining PreLoved Device and its customer base and products will be migrated as well.
Bhatia told us that PreLoved Device will leverage Overcart’s 1 Mn customers, which would help the company get a huge userbase. He added that over the next week, the company will inform all these customers about the acquisition and that they should use PreLoved Device now.
Based in Gururgam, PreLoved Device entered in the Refurbished market in Mid-2019, with the mission of creating a new experience of buying refurbished products for its aspiring customers. With PreLoved Device, Detel aims to strengthen the entire ecosystem of buying and selling of refurbished and pre-owned devices.
The company claims to ensure the quality by selling the most authenticated products certified and graded by the experts at Detel’s state-of-the-art refurbishment facility.
Founded in 2012 by Alex Souter and Saptarshi Nath, Overcart provides returns management and liquidation services to major e-commerce companies, manufacturers and retailers.
Backed by JSW Ventures etc, Overcart was once valued at INR 200 Cr. It works with leading businesses to liquidate their excess stock and returned goods. It provides quality checks and certification, repair assistance and online returns management for their clients.
In a media statement, Bhatia said, “India is an important market for us and this acquisition will help in considerably scaling-up our domestic business. With this acquisition, we will be able to leverage the technological capabilities, a customer database that Overcart has built in the refurbished industry.”
However, Overcart had been silent for over 2 years now. In November 2017, the company posted a notice stating that it will only cater to bulk orders, however, consumer complaints about not receiving the product were also seen rising post that. The dissatisfied consumers and the overall low product quality have been termed as the reason for startup shutdown.
Bhatia told us that the Overcart founders had shifted base to Singapore to focus on different things. Hence, when PreLoved Device was looking for an acquisition, it worked out well. As part of the deal, investors, as well as founders, have exited Overcart.
According to a report by US-based research firm Persistence Market Research (PMR) global sales of refurbished and used mobile phones are estimated to account for revenues worth $ 19.7 Bn in 2017. By 2025-end, this number is expected to reach nearly $40 Bn. The Indian re-commerce market is poised to be worth $4 Bn by 2020, according to a Deloitte India report.