Arzooo raises $ 70 million to bring ‘best e-commerce’ to Indian physical stores – TechCrunch

Indian startup Arzooo, which is trying to bring the “best e-commerce best” to physical stores, has raised $ 70 million in a new round of financing as it seeks to expand its retail platform in the South African market.

SBI Investment և Trifecta Leaders Fund has led the financing of the B Series startup of the Bengaluru Head Office. Tony Sean, the founder of Doordash, Celesta Capital և 3 Lines VC, has invested in the new phase, which is estimated at $ 310 million. The startup has raised more than $ 85 million so far in various stages.

Millions of retailers in India are struggling with large retail chains և e-commerce giants Amazon և Flipkart because they do not offer a wide range of products և unable to provide customers with the best prices.

Founded by two Flipkart alums Wish! tries to solve it by working with big brands to secure large stocks, sell them at better prices, deliver them to retail stores.

The startup, which currently operates in the consumer electronics category և stores more than 10,000 different products, says it has partnered with more than 30,000 retailers in 22 Indian states.

“Consumers who buy or leave these stores because of pricing can help solve it,” said Khushnud Khan, co-founder and CEO of Arzooo, in an interview.

Arzooo has built its own logistics supply chain for last-mile resource deliveries, as well as providing working capital to businesses, giving them up to $ 25,300 in working capital.

“These are the shops that fall on the lowest slab of the value chain. They do not have access to such a good margin chain as, say, Reliance Retail և Croma և Amazon. “They are tucked between the two,” he explained.

Arzooo is able to offer better prices to these stores as several brokers cut the equation. “Today we are cooperating with major producers, national distributors,” he said.

These stores, which typically range in size from 700 to 1,200 square feet, sell for $ 12,500 to $ 19,000 per month. They account for 75% of sustainable consumer purchases in India, Khan said.

“Arzooo’s business model is very efficient in terms of capital, it can meet the growing diversified needs of both retail stores and end customers. It is also great for them to build a functional logistics system under their own brand, which is one of the most important parts of the business. “There is no limit to the future of the company. We would like to fully support the company on its path to great success,” said Yoshitaka Kitao, President of SBI Investments.

Arzooo plans to deploy fresh capital to expand to more Indian states, such as launching consumer services, Khan said.

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