Bengaluru-headquartered Arzooo, a B2B retail tech platform for electronics, has raised $70 million in its Series B funding round from global and Indian investors including SBI Investment, Japan and Trifecta Leaders Fund, it announced on Wednesday.
Tony Xu, the founder of Doordash has also invested in the current round, making Arzooo his first India investment. Existing investors including Celesta Capital and 3 Lines VC also participated in the financing, the startup said in a statement.
Arzooo said it will utilize its latest funding to scale its technology and expand to new markets with an aim to deepen its vertical play in the $65 billion consumer electronics market in India.
Founded by Khushnud Khan and Rishi Rathore, Arzooo’s platform provides retailers access to a wide variety of SKUs across leading and emerging brands. Arzooo has a pan-India presence and claims to be working with 30,000 retailers already.
“We’re pleased to welcome new set of investors to the Arzooo rocketship with this round that was oversubscribed by 1.4X,” said Khushnud Khan, co-founder & CEO, Arzooo.
“While the last decade has been about the proliferation of new-age economies, Internet was still seen as a rival to offline retail and the retailer community has been at the receiving end for a while. Today, technology is making fast pace inroad in to brick & mortar and we are excited to be at the forefront of this revolution while catalyzing it by enabling the next generation retail for lacs of neighborhood stores. Arzooo is essentially eliminating the barrier of size, scale and capital for medium and small stores while democratizing retail in india,” he added.
Operated by Sterne India Pvt. Ltd, Arzoo had raised $7.5 million in Series A funding in October 2020 from US-based technology venture fund WRVI Capital, 3Lines Venture Capital, and Jabbar Internet, followed by an investment from Zoom founder Eric Yuan.
“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,” said Yoshitaka kitao, Chairman and president, SBI investment.
DC advisory served as an adviser for Arzooo.