Bengaluru based retail tech startup, Arzooo has raised $7.5 Mn in Series A funding led by WRVI Capital. The round saw participation from its existing investors 3Lines Venture Capital, and UAE’s Jabbar Internet Group and others.
With the fresh capital, the startup plans to leverage its forte in technology and will also help in market upgradation.
Founded by Khushnud Khan and Rishi Raj Rathore in 2018, Arzooo is a retail technology platform that empowers retail stores against ecommerce firms. It currently operates in Bengaluru, Delhi-NCR, Chennai, Kolkata and Hyderabad.
Commenting on the fundraise, Khushnud Khan, cofounder of Arzooo.com said, “Our strong growth over the past year is a testimony to the positive impact Arzooo has had on the business of physical retailers. The current fundraise will help us boost our technology, quality of service and reach to fulfill our goal of equipping each retail store with technology to grow and perform profitable business.”
Arzooo had recently announced the launch of its digital credit lending product, Arzooo Credit for offline retailers that offers working capital to Arzooo’s partner stores.
Its competitors include Amazon, Flipkart, ShopClues and vertically integrated startups such as Zefo focusing on appliances.
The company claims to be scaling operations in Eastern and Western regions of the country and it is also looking to channelise funds to ramp its tech platform, ‘Go Store’.
With Arzooo Credit, the company claims that retailers will be able to avail of INR 1-10 lakh credit on the Arzooo platform. Currently, the service is open to over 5,000 retailers across 10 cities.
Sudhir Rao, Managing Partner WRVI Capital India said, “Arzooo’s technology and localised demand-Supply integration offers great scalability to retail stores for both product expansion and profitability, which is a win-win for all.”