Ex-Flipkart execs’ retail tech startup Arzooo nets $7.5m in series A round

Arzooo, an India-based business-to-business retail tech startup, announced that it has secured US$7.5 million in a series A funding round led by WRVI Capital.

Arzooo co-founders Rishi Rathore (left) and Khushnud Khan / Photo credit: Arzooo

Existing investors such as US-based 3Lines Venture Capital and Dubai’s Jabbar Internet Group also participated in the round.

Arzooo empowers offline retailers to compete against ecommerce platforms like Amazon and Walmart-backed Flipkart. The startup offers inventory selection and delivery services to its partner stores with its technology platform.

Founded in 2018 by ex-Flipkart colleagues Khushnud Khan and Rishi Raj Rathore, Arzooo said it has teamed up with over 5,000 stores across more than 10 cities. It currently operates in Bengaluru, Delhi-NCR, Chennai, Kolkata, and Hyderabad.

The company recently rolled out Arzooo Credit, a digital credit lending product, to provide retailers with a working capital cushion ranging from 100,000 rupees (around US$1,357) to 1 million rupees (about US$13,574) credit. This launch comes as the retail industry is just on its way to recovery from Covid-19.

Arzooo said in a statement that it will use the new funds to scale operations in eastern and western regions of India as well as develop its tech platform Go Store. It aims to serve 50,000 retailers in the coming year.

In 2018, the company received an undisclosed amount of seed money from Omphalos Ventures India, followed by a US$1 million pre-series A round led by Jabbar Internet Group last year.

Currency converted from Indian rupee to US dollar: US$1 = 73.73 rupee.