Retail tech platform Arzooo secures $70mn in Series-B round

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Retail tech platform Arzooo secures $70mn in Series-B round
Retail tech platform Arzooo secures $70mn in Series-B round

To ramp up its technology infrastructure, scaling stores’ growth and market expansion, the B2B retail tech platform Arzooo will utilize its latest funding

In a Series-B round, $70 million has been raised by the B2B retail tech platform Arzooo from SBI Investment, an investment arm of Japan-based SBI Holdings and Trifecta Leaders Fund. Celesta Capital and 3 Lines VC, existing investors also participated.

Tony Xu, founder of Doordash, an American food delivery major also joined the new round. This is Xu’s maiden investment in India. SBI Holdings had recently invested in Standard Chartered-backed Solv, a B2B digital marketplace for MSMEs.

The Bengaluru-based company, previously in Series A from Celesta and 3 Lines had raised $7.5 million followed by an investment from Zoom founder Eric Yuan in October 2020 and a $6 million debt fund from Trifecta in February 2021.

While the company did not disclose its current valuation, it’s estimated to be valued at over $300 million. During the last equity round as per Fintrackr’s estimates, the company was valued at around $32 million.

To ramp up its technology infrastructure, scaling stores’ growth and market expansion, the B2B retail tech platform Arzooo will utilize its latest funding, the company said in a press release.

The four-year-old B2B retail tech platform, founded by ex-Flipkart executives Khushnud Khan and Rishi Raj Rathore is a real-time reverse auction-based e-commerce platform for high value branded goods such as refrigerators, air conditioners and televisions among others.

Aacross leading and emerging home appliance brands, the platform provides retailers access to a wide variety of SKUs. According to the B2B retail tech platform, it has a pan-India presence and is already powering over 30,000 retailers allowing them to scale without the challenges of extensive inventory holding and access to pricing.

To offer up to 20 lakh loan to its partner stores for working capital purposes, the B2B retail tech platform also provides a digital credit lending product Arzooo Credit.

The B2B retail tech platform has scaled up at a fast pace and this could be evident from its financial performance in the fiscal year ending March 2021. The company’s operating revenue grew 22.5% from INR 211.16 crore in FY20 to INR 258.73 crore during FY21, as per its annual financial statement filed with RoC.

While the company is yet to file its financials for FY22, its losses shot up 5.8X to Rs 17.96 crore FY21. It’s worth noting that the B2B retail tech platform was close to breakeven in FY20.

The B2B retail tech platform competes with large horizontal players such as Amazon, Flipkart, Udaan. Sequoia Capital-backed Zefo, one of the B2B retail tech platform’s direct competitors, was acquired by Quikr in April 2019.

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