Retail-tech startup Arzooo has secured $6 million from Trifecta Capital. The startup will leverage funds for market expansion and scaling its logistics and operational capabilities.
Founded by ex-Flipkart colleagues and IIT-Kharagpur alumni Khushnud Khan and Rishi Raj Rathore in 2018, Arzooo.com is a retail technology venture that empowers physical retailers to compete and grow against e-commerce platforms like amazon and Flipkart.
The venture claims its B2B business witnessed strong growth through the pandemic and the company is aiming to hit $500 million sales run rate this year. Arzooo, which currently operates across South, North and Eastern India, will now be scaling its operations in Mumbai, rest of Maharashtra and Gujarat soon.
The startup will also channelize funds to ramp up its supply chain infrastructure with technology and operational capabilities to increase its reach across the country to serve over 50,000 retail stores that it plans to work with and improve the speed of delivery, service experience and operational efficiency.
Commenting on the funding, Khushnud Khan, co-founder and CEO of Arzooo.com, says, “Our growth trajectory has been phenomenal and this capital will be used to fuel the same with the network expansion and scaling up our supply chain capabilities to deliver better services to our partner stores.”
Rahul Khanna, Managing Partner at Trifecta Capital, says, “We are proud to partner with Arzooo, a fast growing Retail Tech platform in the Consumer Durables space. Neighbourhood stores are a fantastic channel to drive digitization, inventory expansion and price competitiveness over online retailers.”
According to Khanna, Arzooo has seen a strong demand recovery post the Covid-19 lockdown. “We look forward to continue supporting them as they grow their footprint going forward”.
The startup in October last year announced its Series A fundraise of $7.5 million led by WRVI Capital along with its existing investors.
Soon after, in November 2020, Arzooo had another investment coming from Zoom Video founder Eric Yuan, this also marked Eric’s first ever investments in an Indian tech startup.
With over 7,000 partner stores spread across 10-plus cities, Arzooo claims it enables a partner store to overcome broader limitations of physical retail and offer its customers the largest inventory selection, best price and fastest delivery, without them having to stock everything. This is backed by attractive payments and financing solutions to drive up sales and conversion in- store.