An Indian Retail Technology Startup Arzooo Raises Investment

A retail technology startup Arzooo, which aids small businesses in competing with Amazon and Flipkart, revealed on Wednesday that it has received an incredible $70 million from SBI Investment, Trifecta Leaders Fund, and other investors.

Several international and Indian venture capitalists (VCs), including Celesta Capital and 3 Lines VC who made a contribution to Arzooo’s Series A round, participated in the round. The creator of Doordash, Tony Xu, also invested for the first time in India by taking part in the most recent fundraising round for Arzoo.

According to Yoshitaka Kitao, chairman and president of SBI Investment, “Arzooo’s business model is very capital efficient and can satisfy the ever-diversifying needs of both retail establishments and end-users. As one of the most crucial aspects of the business, having a self-branded, effective logistics system is also great for them”.

It will make use of its most recent funding to extend its technology capabilities with a focus on accelerating store growth and platform market expansion.

Arzooo, founded in 2018 by former Flipkart coworkers and IIT-Kharagpur graduates Khushnud Khan and Rishi Raj Rathore. They have assisted over 30,000 retailers to compete with larger sellers on online marketplaces like Amazon, Flipkart, Snapdeal, Meesho, and others by providing them with the tools and technology they need.

Without needing to invest in inventory, the company provides partner stores with technological platforms to provide customers with more options. In order to increase in-store sales conversion, the platform also assists small shops in setting competitive prices and provides appealing payment options. 

India is the third-largest retail market in the world, behind China and the US, according to the “India D2C Report 2022” by Shiprocket and the Confederation of Indian Industry (CII).

In India, retail spending per capita is $590 million, but the market is expected to reach $821 million in FY21. By the end of this decade, the research company estimates that the Indian retail market will present a $1,900 billion opportunity. In contrast, India’s e-commerce penetration is currently at 8% and is anticipated to rise to 15% over the next five years.