Arzooo, a retail technology platform, has raised a $70 million funding round backed by global and Indian VCs including SBI Investment, Japan, and Trifecta Leaders Fund.
Tony Xu, the founder of Doordash, has also invested in the current round, making Arzooo his first India investment. Along with SBI Investment, an arm of Japan’s SBI Group, and Trifecta Leaders Fund, existing investors including Celesta Capital and 3 Lines VC also participated in this round. The company had previously raised a Series A from Celesta and 3 lines, followed by an investment from Zoom founder Eric Yuan.
Arzoo will utilise its latest funding to scale its technological strength focussed on improving stores’ growth end-to-end and market expansion for the platform and will continue to deepen its vertical play in the $65 billion consumer electronics market in India.
Speaking on the funding, Khushnud Khan, Co-founder and CEO, Arzoo, said, “We’re pleased to welcome a new set of investors to the Arzooo rocketship with this round that was oversubscribed by 1.4X. While we truly appreciate the interest from the investor community, we’re really glad to get onboard some amazing set of people with a shared vision to transform offline retail by joining the board”
Founded by Khushnud Khan and Rishi Rathore, Arzooo provides retailers access to a wide variety of SKUs across leading brands. Arzooo 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.
Khan added, “Today, technology is making a fast inroad into brick and mortar and we are excited to be at the forefront of this revolution while catalysing it by enabling the next generation of retail for neighbourhood stores. Arzooo is essentially eliminating the barrier of size, scale, and capital for medium and small stores while democratising retail in India.”
Yoshitaka kitao, Chairman and president, SBI investment, said, “Arzooo’s business model is capital efficient and can meet the increasingly diversified requirements 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. There is no limit to the company’s future, and we would like to fully support the company on its way to great success.”
“We are excited to partner with Arzooo and scale India’s leading B2B platform for consumer durables and electronics. This is a large category of consumption that is ripe for disruption through the efforts of companies like Arzooo, especially in non-metro markets. Rishi, Khushnud, and the team have built this scalable platform in a very capital-efficient manner and continue to add new use cases, empowering retailers to address this rapidly growing market.” said Lavanya Ashok, Partner at Trifecta Ca