Zefo, an online marketplace specializing in second hand and factory second furniture and appliances, has announced that it has raised Rs 40 crore in a round led by Sequoia India, with participation from Beenext and existing investor Helion Ventures.
The latest funding will allow Zefo to diversify into new geographies and categories and extend its reach in existing categories. It will also use this fund to invest in technology and build a talent pool.
Zefo promises a completely hassle-free and professional used goods shopping experience to buyers and sellers. The company provides high-quality used goods that are verified through a stringent quality control and assessment process.
Unlike existing online classifieds, they provide a high degree of standardization through quality checks as well as managing end-to-end logistics, in an otherwise unorganized sector, thereby adding a layer of trust and convenience to this unstructured second hand goods market. To sellers, Zefo provides a fair price, upfront cash, flexible pickups and a completely hassle-free and professional experience.
Rohit Ramasubramanian, co-founder of Zefo, said,
The household goods are a $40-50bn marketplace and the market is growing rapidly. Zefo is currently growing at a rate of 40% every month. Since our launch, we have already served 30,000+ customers, selling 400-500 products a day. Our ambition is to expand into new categories and cities in the next one year and to be the preferred shopping destination for used goods.
Our proposition of high-quality products at an affordable price is finding tremendous validation in a rapidly expanding market for second hand consumer durables in India. We cater to the needs of today’s smart consumer looking for a quality lifestyle at a reasonable price.
Abheek Anand, Principal, Sequoia Capital India Advisors, said:
Zefo’s USP lies in its ability to bring the element of trust, reliability, and convenience in a market where these have been largely ignored. Their exceptional net promoter score is a testament to how well the service is resonating with both buyers and sellers on the platform.
With services are available in Bangalore, Mysore, Delhi, Gurgaon, Noida and Mumbai, the company currently offers televisions, refrigerators, washing machines and microwaves under the appliances category and beds, sofas, dining tables, etc. in the furniture category.
The company was founded by Rohit and two of his co-founders — Karan Gupta and Himesh Joshi. They worked together at the Boston Consulting Group before starting Zefo. A fourth co-founder — Arjit Gupta, previously worked at Adobe, Flipkart, and Amazon.