Arzooo
Overview
Arzooo is a Bengaluru-based B2B retail tech platform founded in 2016 by Khushnud Khan and Rishi Raj Rathore, both former Flipkart executives. It was established to empower electronic retailers in India by leveraging e-commerce technology to compete against major online giants like Amazon and Flipkart. Since its inception, Arzooo has raised approximately $90 million from investors such as SBI Investment, Trifecta, Celesta Capital, among others, and has established a pan-India presence, assisting over 30,000 retailers across 250 cities.
Recent Developments
- November 2024: Arzooo's assets were acquired by Moksha Group in a distress sale. The acquisition follows financial challenges and unsuccessful fundraising attempts by Arzooo, leading to heavy layoffs and unpaid seller payments.
- January 2024: Arzooo managed to secure an undisclosed amount in an extended Series B funding round, despite ongoing financial struggles.
- June 2024: Reporting a significant revenue increase in FY22, Arzooo's losses also surged, highlighting the strain of rapid scaling efforts without sufficient capital backing.
- April 2023: The company faced substantial challenges, including withheld salaries and blocked payments to sellers due to a severe funding crunch.
- June 2022: Arzooo raised $70 million in Series B funding to enhance its technology infrastructure and expand its market presence.
Company Information
| Attribute | Information |
|---|---|
| Founding Date | 2016 |
| Headquarters | Bengaluru, India |
| Founders | Khushnud Khan, Rishi Raj Rathore |
| Revenue | INR 1,117 crore in FY22 |
| Profits | Loss of INR 63 crore in FY22 |
| Key Investors | SBI Investment, Trifecta Capital, Celesta Capital |
| Industry | Retail Tech, Consumer Electronics |
| Number of Employees | Approximately 30 as of early 2024 |
Early History
Arzooo was founded in 2016 by Khushnud Khan and Rishi Raj Rathore, drawing from their experience at Flipkart. Initially focused on addressing the challenges offline retailers faced against e-commerce giants, Arzooo developed a platform to provide retailers with a wide array of consumer electronics without maintaining large inventory stocks. By 2018, the company had established its reputation by integrating thousands of retailers into its network, offering competitive prices through its vast supplier partnerships.
Company Profile and Achievements
Arzooo operates on a unique B2B model that allows small to medium-sized retailers to compete with larger players by offering a digital platform that integrates inventory management, logistics, and financing solutions. This model provided significant benefits like access to a larger product catalog and enhanced price competitiveness. Major milestones include:
- 2018: Expansion into major Indian cities, adding significant numbers of retailers to its network.
- 2019: Secured key partnerships with electronics brands to expand product offerings.
- 2020-2021: Introduced "Arzooo Express," an in-house logistics service, to improve delivery efficiency.
- 2022: Raised $70 million through Series B funding to bolster technology and expand its retail footprint.
- 2023-2024: Despite significant challenges, the company maintained operational technology enhancements and attempted market expansion.
Current Operations and Market Position
Arzooo, before its acquisition by Moksha Group, focused on empowering retailers by providing access to a vast virtual inventory of electronics. This allowed smaller stores to offer a range similar to larger e-commerce sites without the capital burden of owning stock. However, aggressive expansion and market challenges led to financial instability. Despite these setbacks, Arzooo maintained a presence across 250 cities, impacting over 30,000 retailers by integrating fintech solutions to support retailer financing needs.
Arzooo Founder
Khushnud Khan and Rishi Raj Rathore, both IIT-Kharagpur alumni and former Flipkart executives, founded Arzooo with the vision of creating a support system for offline retailers aiming to compete in a digitized market. Their leadership has been pivotal in navigating the startup through both its growth phases and more challenging financial downturns.
Arzooo Company Products
Arzooo initially focused on providing small retailers with access to consumer electronics like refrigerators, TVs, and air conditioners through its technology-driven platform. Over the years, it also launched its private label brand "NU," which included smart TVs and home appliances to appeal to market demand.
Conclusion
Arzooo stands as a testament to the complexities of scaling a retail tech startup in India. With its innovative B2B model, the company has greatly impacted the electronic retail landscape by providing smaller retailers the tools to compete with giant market players. Despite its financial challenges culminating in a distress sale to Moksha Group, Arzooo's approach to integrating technology with traditional retail offers a blueprint for future businesses aiming to bridge offline and online commerce in India.