Overcart raises $3 mn Series A funding from JSW Ventures, Omidyar Network, Sattva Capital and Venture Works
Overcart, a marketplace for over-stocked, unboxed, refurbished and pre-owned products, has raised $3 million in Series A funding from JSW Ventures, Omidyar Network, Sattva Capital and Venture Works. In 2014, the startup had raised funds from K Ganesh’s Growthstory, The Phoenix Fund, Snow Leopard Ventures and GSF Superangels.
The company plans to invest the fresh funds in hardware and software innovations to diagnose, refurbish and quality check products across more categories and locations. With a team of 120 people, Gurgaon-based Overcart is currently using both software and hardware innovations to power its operations across Delhi NCR, Bengaluru and Mumbai.
Badri Pillapakkam, Investment Partner, Omidyar, added,
In a country where the GDP is just above $1,500, yet the average price of a new smartphone is $160, Overcart's certified, quality products come in to significantly increase the purchasing power of consumers who otherwise would not have access to these goods. The company's philosophy of putting quality first brings much needed transparency to an otherwise opaque 'buyer beware' market, while tapping into the massive demand for unboxed and refurbished goods.”
Badri and Gaurav Sachdeva, Managing Partner of JSW Ventures will join the Board of Directors, while Samir Shah from Sattva Capital will become a board observer.
A glimpse of the story
Founded in 2012 by Alex Souter and Saptarshi Nath, two colleagues from the consulting firm CEB, Overcart provides returns management and liquidation services to major e-commerce companies, manufacturers and retailers. The company operates Overcart.com.
The startup graduated from the first GSF accelerator batch along with companies such as Little Eye Labs and SilverPush.
The company works with leading businesses to liquidate their excess stock and returned goods. It provides quality check and certification, repair assistance and online returns management for their clients. It currently offers categories in mobile phones, laptops, accessories and cameras, with a plan to expand into other categories over the coming weeks.
Overcart recently expanded into Mumbai and added consumer electronics to its product portfolio. It also launched its own warranty brand ‑ Overtrust ‑ that provides walk-in product repair services in 55 cities across India.
We will scale Overcart.com aggressively across the next 18 months. We have seen tremendous growth both in GMV and repeat users across the last 12 months – with around a third of customers repeat buying from us MOM due to the convenience, price, and peace of mind we offer. We plan to increase our penetration in tier 2 cities and beyond, where there is a massive pent-up demand for affordable electronics as well as an appreciation for high quality,” said Saptarshi.
According to an estimate, the market size for reverse logistics is $20 billion and is growing at a phenomenal pace. Experts believe that reverse logistics is plagued by mismanaged returns, high distribution costs and retailer–manufacture conflicts, among other reasons. The IT asset disposition market has been growing at 10 percent CAGR, and by 2020, it is estimated that the market will touch $50 billion in India alone.
Over the past few years, the e-commerce sector has grown rapidly in India and the need for both forward and reverse logistics has increased. There are a few startups that are doing well in the refurbished market in India: Reboot, a Gurgaon-based startup sells refurbished electronic goods; JustLikeNew.in, an e-commerce platform picks up damaged smartphones, repairs them, and delivers them back to users. They also sell refurbished electronic goods. Bengaluru-based Blubirch offers complete solution in reverse logistics. It has secured $2 million in angel funding from Chicago Capital ventures, Sanjay Mehta, and others.