Arzooo, a B2B retail tech company has raised $70 million in its series B funding round from SBI Investment, Japan and Trifecta Leaders Fund, with participation from Tony Xu, the Founder of Doordash.
The round also saw participation from existing investors including Celesta Capital and 3 Lines VC.
The company plans to use this fund to focus on scaling up its technology by developing stores and expanding the market for the platform as it continues to deepen its vertical play in the $65 billion consumer electronics market in India.
The Bangaluru-based Arzooo was founded in 2018 by Khushnud Khan and Rishi Rathore, It provides retailers access to a wide variety of SKUs across major and emerging brands.
The retail startup has a pan-India presence and is already powering over 30,000 retailers, allowing them to scale without the challenges of extensive inventory holding and access to pricing.
“We’re pleased to welcome new set of investors to the Arzooo rocketship with this round that was oversubscribed by 1.4X…we’re really glad to get onboard some amazing set of people with shared vision to transform offline retail joining the board”, said, Khushnud Khan, Co-founder and CEO, Arzooo.
Commenting on the investment, Yoshitaka kitao, Chairman and President, SBI investment, said, “Arzooo’s business model is very capital efficient and can meet the increasingly diversified requirement of both retail shops and end customers. It is also great for them to have built a self-branded functional logistics system, which is one of the most important parts of the business.”
“This is large category of consumption that is ripe for disruption through the efforts of companies like Arzooo, especially in non-metro markets,” said, Lavanya Ashok, Partner at Trifecta Capital.
DC Advisory acted with the company as an advisor on managing the transaction process for this funding round.
In August 2021, Arzooo had raised undisclosed amount in funding round from Eric Yuan, Zoom meeting app’s founder and Silicon Valley’s leading venture capitalist, Bill Tai.
Earlier in February 2021, it had raised $6 million funding from venture debt fund Trifecta Capital.
Arzooo is India’s largest and fastest-growing retail tech start-up organizing the highly fragmented physical retail and digitalizing them. Focused on the $80Bn markets for consumer electronics, including white goods, TVs, mobile phones, and small appliances, its technology enables India’s 5,00,000+ neighbourhood electronics stores to offer the same selection of products as large, urban big-box retailers.
Founded by industry veterans and backed by Eric Yuan (Zoom Founder) and top global VCs, Arzooo is dedicated to integrate over 5,00,000+ fragmented retail stores PAN India and is already present across 50+ markets.