B2B retail tech startup Arzooo raises $6 million from Trifecta Capital
Bengaluru-based retail tech startup Arzooo on Wednesday announced it had raised $6 million in funding from Trifecta Capital. The company said it would use the capital for market expansion and scaling up its logistics and operational capabilities.
Arzooo said that its B2B business had posted a strong growth despite the Covid-19 pandemic. It is also looking to hit a $500 million sales run rate this year. The latest funding will help the startup improve its supply chain infrastructure and operational capabilities to increase its reach in the country.
Arzooo currently operates across South, North and eastern India. The company now aims to scale up its operations in Mumbai, the rest of Maharashtra, and Gujarat very soon.
“We're 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. 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,” said Rahul Khanna, Managing Partner, Trifecta Capital.
Arzoo's recent funding
In October last year, Arzoo had raised $7.5 million in Series A funding led by WRVI Capital. Existing investors 3Lines Venture Capital, a US-based investor, and Jabbar Internet of UAE also participated in the round.
Just the next month, the startup raised funding from Zoom's founder Eric Yuan and venture capitalist, Bill Tai. The company did not disclose the amount it had raised.
An overview of Arzooo
Arzooo is a business-to-business retail tech startup. It was founded by former Flipkart colleagues and IIT-Kharagpur alumn, Khushnud Khan and Rishi Raj Rathore in 2018. The startup aims to tap the retail space by bringing fragmented retail stores in India to its tech platform. The company claims to have over 5,000 “Arzooo-powered stores” in India.
“Arzooo 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,” according to the company's description.