Zefo, which bills itself as “India’s fastest growing used goods marketplace,” said today that it has raised $9.2 million in Series B funding. The round was led by returning investors Sequoia India and Helion Venture Partners, with participation by Beenext.
Along with its Series A, which Zefo closed last year, and earlier funding, this brings the startup's total raised so far to almost $16 million, according to Crunchbase.
Zefo currently operates in Bangalore, Mumbai and Delhi and distinguishes itself from other companies in India’s e-commerce boom by focusing on secondhand items in three categories: furniture, home appliances and mobile phones.
Since these are relatively high-ticket items, even when purchased used, Zefo’s value proposition is managing most of the transaction. Instead of operating as a peer marketplace, it provides potential sellers with a quote after a quality check, pays cash if the offer is accepted and picks up items. Before listing on Zefo, items are refurbished by the company. Buyers get a return policy and a buyback guarantee of up to 70 percent.
In a statement, Sequoia Capital India Advisors Abheek Anand principal 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.”
Zefo claims it has served 150,000 customers since it was founded in 2015 and currently lists 10,000 products.