Retail technology startup Arzooo has raised $6 million from venture debt fund Trifecta Capital for expansion and scaling up purposes.
“The capital will be used to fund growth, with the network expansion and scaling up our supply chain capabilities to deliver better services to our partner stores,” company CEO and Co-Founder Khushnud Khan told a mainstream business media.
The company has raised funds at a time when its sales touched sales run rate of $500 million this year and raised $7.5 million in October 2020 through Series A funding from Zoom Video founder Eric Yuan, WRVI Capital, and existing investors.
These funds will be used to ramp up supply chain infrastructure and serve over 50000 retail sources by improving technology and operational capabilities, the company said..
The firm also aims to improve delivery speed and service experience.
“Neighbourhood stores are a fantastic channel to drive digitisation, inventory expansion, and price competitiveness over online retailers. Arzooo has seen a strong demand recovery post the COVID-19 lockdown. We look forward to continuing supporting them as they grow their footprint going forward,” said Rahul Khanna, managing partner, Trifecta Capital said.
Arzooo enables partner stores to provide their customers with the largest selection of inventory, best price and fastest delivery, without having to stock everything.
This is backed by attractive payments and financing solutions to drive up sales and in-store conversions.
The company operates in 10 cities in the south, north and east and will soon scale up operations in Mumbai, rest of Maharashtra and Gujarat.
Arzooo was founded in 2018 by ex-Flipkart colleagues and IIT-Kharagpur alumni Khan and Rishi Raj Rathore.
It has enabled more than 7,000 partner stores to grow sales and compete with bigger sellers and online marketplaces such as Amazon, Flipkart, ShopClues and vertically integrated startups such as Zefo.
