Arzooo Forays into Logistics; Invests $2 mn

Arzooo, India’s leading retail-tech startup announced the launch of its in-house logistics service, Arzooo Express with an investment of $2 million, soon after the recent $6 million funding from Trifecta Capital. 

Arzooo Express will manage complete logistics from the first-mile service to the last-mile delivery of goods for its partner stores across the country.
 
Arzooo Express, besides having a fleet of vehicles plying around cities, has an end-to-end technology platform to manage Arzooo’s supply chain on a real-time basis. In the first phase, Arzooo Express will be serving 10,000 pin codes across the country with a fleet of trucks. 
 
The new service will help Arzooo improve its serviceability, speed of delivery, expand its pay-on delivery option to a larger network along with efficiency in its supply chain operations. 
 
By the end of 2021, Arzooo aims to double its logistics service capability to serving 20,000+ pin codes across India with a 3x larger fleet on the ground and state-of-the-art supply chain technology. At present, the logistics service will serve Arzooo’s own client base. However, the company may plan to extend the Arzooo Express platform as a third-party service provider in near future.
 
Khushnud Khan, Co-founder & CEO Arzooo said, “We aim to deliver a level of service for our retailers that’s 2x faster in speed and reliable when it comes to the turnaround time but with a fragmented network of logistics ecosystem with limited capabilities to handle large appliances it is hard to achieve the speed and quality of service.” 
 
“Arzooo express equips us with the best supply chain capability built to handle large products, deliver faster service to our customers with an optimum level of operational efficiency that sets us to achieve the larger business objective to serve 50,000 stores by the end of this year,” he added.

India has a universe of about 12 million retail outlets where the logistics service is the spine for running the business enabling the to and fro movement of goods. According to the Indian Brand Equity Foundation (IBEF), India was ranked second in the 2019 Agility Emerging Markets Logistics Index and the country’s logistics sector was growing at over 10 percent each year.

So far Arzooo has raised about $15 million of capital. This includes a Series A round of $7.5 million funding led by WRVI Capital along with its existing investors in October 2020, followed by the investment from ZOOM video founder Eric Yuan, this was eric’s first-ever investment in an Indian start-up. February this year Arzooo secured another $6 million from Trifecta Capital.