Online classifieds marketplace, Quikr is reportedly in talks to acquire Gurugram-based used goods marketplace Zefo, for approximately $28.5 Mn (INR 200 Cr.) in an all stock deal.
Following the acquisition, Sequoia-backed Zefo will reportedly continue to operate as a separate entity. However when contacted about the deal, Zefo called it a speculation and Quikr has denied to comment on the story.
Zefo was founded by Arjit Gupta, Himesh Joshi, Karan Gupta, Rohit Ramasubramanian in 2015. This startup manages its end-to-end operations, including product refurbishment and repairs of its sold products, in order to ensure a higher degree of standardisation.
In 2017, Zefo had raised $9.2 Mn (INR 60 Cr) in Series B funding. The round was led by prolific investors such as Sequoia India, Helion Venture Partners and Singapore-headquartered VC fund Beenext.
Founded in 2008, Bengaluru-based Quikr has followed an acquisition strategy to strengthen its various businesses and has acquired 14 startups till date including HDFC Developers, Commonfloor, Babajob, Hiree, Zimmber, and ZapLuk.
A Boost To Quikr’s Used Goods Segment
Quikr, which competes with OLX, Quikr and eBay, already hosts refurbished products advertisements on its platform, but it does not offer repairs or delivery of the refurbished goods. The platform simply connects the buyer and seller, who then schedule the product pickup and payment among themselves.
However Zefo has a full-fledged operations and logistics team, including capabilities such as repairs, delivery and quality checks. In case Quikr acquires Zefo, Quikr will also directly compete with companies like Cashify and InstaCash, which buy old mobiles and refurbish them.
Quikr has raised a total funding of $350 Mn (INR 2,483.7 Cr) from investors such as Tiger Global, Kinnevik, Warburg Pincus, Matrix Partners, Norwest Venture Partners, eBay, and Nokia Growth Partners.
Quikr India Pvt Ltd has reported a consolidated revenue of $24.54 Mn (INR 173.49 Cr) for the year ending March 2018, a jump of 95% from its revenue from operations in the financial year 2017.
A Zinnov report had stated that online resellers space has been predicted to grow to $48 Bn-$60 Bn by 2022. Also, the market share of online resellers is expected to rise from the then 1.2% of the Indian retail market to 5.4%.