DoorDash founder backs Indian retail tech startup’s $70m series B round

Arzooo, an India-based B2B retail tech startup, has raised US$70 million in a series B round co-led by SBI Investment and Trifecta Leaders Fund, along with existing investors Celesta Capital and 3Lines Venture Capital.

DoorDash co-founder Tony Xu also participated in the round, marking his first venture investment in India.

Arzooo said the round was oversubscribed by 1.4x. To date, the startup has raised a total of over US$80 million in funding.

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

Founded in 2018 by two former Flipkart colleagues, Khushnud Khan and Rishi Rathore, Arzooo helps physical retailers go online through its ecommerce, supply chain, and fintech solutions. Its platform gives retailers access to a wide variety of stock-keeping units across leading brands, as well as provides them with working capital.

The company said it has teamed up with more than 30,000 retailers across 22 states in India and provides them access to over 10,000 different products, mainly in the electronics and consumer durables categories.

Arzooo plans to use the new funds for technology improvement and business expansion. The company said it will continue to deepen its bet in India’s US$65 billion consumer electronics market.

“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.

See also: India’s young roll-ups may be in for a wake-up call