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Bangaluru-based B2B retail tech firm Arzooo on Wednesday has raised $70 million in a new round from SBI Investment, Japan and Trifecta Leaders Fund. Tony Xu, the Founder of Doordash, has also participated in the current round, marking his first investment in India.

Speaking on the funding, Khushnud Khan, Co-founder and CEO, Arzooo, said,

“We’re pleased to welcome new set of investors to the Arzooo rocketship with this round that was oversubscribed by 1.4X…we’re really glad to get onboard some amazing set of people with shared vision to transform offline retail joining the board”

Existing investors including Celesta Capital and 3 Lines VC also participated in this round. The startup had previously raised a Series A from Celesta and 3 lines, followed by an investment from Zoom founder Eric Yuan.

Arzooo will utilise its latest funding to scale its technology focused on scaling stores’ growth end-to-end and market expansion for the platform as it continues to deepen its vertical play in the $65 billion consumer electronics market in India.

Commenting on the investment, Yoshitaka kitao, Chairman and President, SBI investment, said, 

“Arzooo’s business model is very capital efficient and can meet the increasingly diversified requirement of both retail shops and end customers. It is also great for them to have built a self-branded functional logistics system, which is one of the most important parts of the business.”

Founded by Khushnud Khan and Rishi Rathore, Arzooo’s platform provides retailers access to a wide variety of SKUs across leading and emerging brands. Arzooo has a pan-India presence and is already powering over 30,000 retailers, allowing them to scale without the challenges of extensive inventory holding and access to pricing.

“This is large category of consumption that is ripe for disruption through the efforts of companies like Arzooo, especially in non-metro markets,” added Lavanya Ashok, Partner at Trifecta Capital.

DC advisory worked with Arzooo as advisor on managing the transaction process for this round.