In a strategic move to bolster its position in the competitive e-commerce landscape, Arzooo, the retailer-focused digital inventory platform, has successfully raised an undisclosed amount in an extended Series B funding round. The funding was secured from existing investors, including prominent names such as Japan-based SBI Holdings, Trifecta Leaders Fund, Celesta Capital, and 3 Lines VC.
While the exact amount of the funding remains undisclosed, this comes on the heels of Arzooo’s initial success in securing $70 million in its Series B round, announced in June 2022. Additionally, the company augmented its financial position by securing Rs 20 crore ($2.4 million) in debt from Trifecta in September 2022. Reports suggest that Arzooo has faced challenges securing a more significant equity round.
The infusion of additional capital is earmarked to fortify Arzooo’s technological infrastructure, enhance operational efficiency, and deepen its footprint in the consumer-durable market within India. Arzooo operates as a real-time reverse auction-based e-commerce platform specializing in electric and home appliances such as refrigerators, air conditioners, and televisions.
Founded by ex-Flipkart executives Khushnud Khan and Rishi Raj Rathore, Arzooo has recently expanded its portfolio with the launch of gostor.com. This innovative B2C platform allows offline retailers to seamlessly transition into the online realm, enabling them to connect with consumers directly. The move empowers retailers by facilitating participation in online sales and reducing dependency on traditional store foot traffic.
In the financial year 2022, Arzooo reported impressive growth, with gross revenue surging 4.3 times to reach Rs 1,117 crore, compared to Rs 259 crore in the previous fiscal year (FY21). However, the company also experienced a 3.5 times spike in losses, amounting to Rs 63 crore in FY22. As of now, Arzooo has yet to release its financial figures for the fiscal year 2023.
This additional funding not only positions Arzooo for further expansion but also underscores the confidence of existing investors in the platform’s potential to thrive in the evolving landscape of digital commerce. As Arzooo continues to refine its strategy and strengthen its technological backbone, the company remains a notable player in the dynamic Indian e-commerce space.
