Zefo, a refurbished furniture and appliance marketplace has raised $9.2 million in Series B round of funding from existing investors Sequoia Capital India, Helion Venture Partners and Beenext. This funding comes a year after Zefo raised INR 40 crore (US$6 million) in Series A funding led by Sequoia India. With the current round, the company so far raised about $16 million.
The startup will use the latest investment into optimising operations, deepening product portfolio and building technology and product teams.
Commenting on the latest investment, Sequoia Capital India Advisors Abheek Anand said, “Sequoia India is very pleased with how Zefo has addressed a white-space in the online used commerce market. This is a massive, underserved market where current alternatives do not work well in the Indian context. Zefo’s managed marketplace approach appeals to both buyers and sellers and their strong growth is a testament to the product-market fit that they have achieved.”
Established in 2015 by Ramasubramania, Karan Gupta, Himesh Joshi and Arjit Gupta, Bangalore-based Zefo is an eCommerce platform committed to giving buyers and sellers an absolutely hassle free used goods shopping experience. Unlike most options out there, one can sell on Zefo within minutes and get cash upfront for their products.
Currently operating in Bangalore, Mysore, Delhi, Gurgaon, Noida and Mumbai, Zefo currently offers 10,000 products across categories like beds, sofas, dining sets, wardrobes, TVs, washing machines, refrigerators and air-conditioners. the company claims to have served 150,000 customers since it started out in 2015.
“Operations are a core part of our business. So, we want to improve our logistics, warehousing and refurbishment and become more efficient. We also want to expand our mobile category, which was launched a few months ago,” said Rohit Ramasubramanian, Co-founder of Zefo
More than half of inventory is sourced from consumers who sell used products. It also sources furniture from e-commerce marketplaces like Flipkart, Amazon, UrbanLadder and Pepperfry. Customers on these platforms exchange their old furniture and appliances in return for new products, while the used products go directly to Zefo.
Instead of functioning as a peer marketplace, Zefo provides potential sellers with a quote after a quality check and pays them in cash if the offer is accepted and then picks up the items right from their doorstep. Before being listed on Zefo, the products are refurbished by the startup and the buyers are provided with a return policy and a buyback guarantee of up to 70 percent.