A series B round co-led by SBI Investment and Trifecta Leaders Fund, together with current backers Celesta Capital and 3Lines Venture Capital, has invested US $70 million for Arzooo, an Indian B2B retail digital business.
Tony Xu, a co-founder of DoorDash, took part in the round as well, making this his first startup investment in India.
According to Arzooo, the round was 1.4 times oversubscribed. The business has so far secured more than US $80 million in investment.
Khushnud Khan and Rishi Rathore, two former coworkers at Flipkart, founded Arzooo in 2018. Through its e-commerce, supply chain, and financial solutions, Arzooo enables physical shops to go online. Retailers may acquire a wide range of stock-keeping units from top brands through its platform, which also allows them access to working cash.
The business claimed to have partnerships with over 30,000 shops in 22 different Indian states, giving them access to more than 10,000 different items, mostly in the electronics and consumer durables sectors.
The fresh money will be used by Arzooo to advance technology and grow the company. According to the business, it would keep increasing its stake in India’s consumer electronics sector, which is worth US $65 billion.
“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 Capital.
