New Delhi-based B2B retail-tech startup Arzooo, founded in 2018 by former Flipkart executives Khushnud Khan and Rishi Raj Rathore, has announced an extension of its Series B funding round.
Investors: The extended Series B round includes participation from existing investors, although the specific amount remains undisclosed. In June 2022, Arzooo secured $70 million in Series B funding from investors such as SBI Investment, 3 Lines, Trifecta Capital, and DoorDash Founder Tony Xu. In September, the startup received Rs 20 crore ($2.4 million) in debt from Trifecta.
Market Expansion and Online Platform: Arzooo has expanded its market presence with the launch of gostor.com, an online platform helping partner offline stores transition to the online space. The B2C platform enables retailers to sell directly to consumers, fostering business growth and reducing reliance on in-store footfalls. Arzooo has ventured into the white goods sector with the introduction of its consumer durable brand ‘NU.’
Business Model: Arzooo operates as a real-time reverse auction-based e-commerce platform for electronic and home appliances. The startup’s approach empowers retailers with access to a diverse range of products and competitive prices, enhancing their ability to scale businesses.
Financial Performance: In FY22, Arzooo’s gross revenue grew 4.3X to Rs 1,117 crore from Rs 259 crore in FY21. However, the company also experienced increased losses, reaching Rs 63 crore.