Retail Tech Startup Faces Shutdown as Assets Change Hands
Moksha Group, a Mumbai-based company known for its distribution, supply chain, and financial solutions, has acquired key assets from Arzooo, a retail tech startup that has been struggling financially. Sources report that this acquisition was part of a distress sale as Arzooo faced the imminent closure of its operations. The startup had already been in the news for laying off a significant portion of its workforce and withholding employee salaries.
The Acquisition: Strengthening Small Retailers
While the exact transaction details have not been disclosed, Moksha Group sees this acquisition as an opportunity to provide smaller retailers with vital digital tools and integrated financial solutions. The group aims to help these retailers by offering access to innovative technology, credit services, and affordable financial products like low-cost EMIs. This will enable small businesses to enhance their competitiveness in an increasingly digital and evolving market.
Moksha’s acquisition could significantly empower small and medium-sized retailers who are grappling with the challenges of digitization and financial management.
The End of Arzooo’s Journey
Founded by ex-Flipkart executives Khushnud Khan and Rishi Raj Rathore, Arzooo had made significant strides in the retail tech space. The company launched gostor.com, a platform designed to help offline stores transition to the digital world. At its peak, Arzooo claimed to have a pan-India presence, supporting over 30,000 retailers across 250 cities.
Despite these promising figures, the company faced mounting financial issues. Arzooo had raised approximately $85 million in funding, including a $70 million Series B round in June 2022 from investors such as SBI Investment, Trifecta, Celesta Capital, and 3 Lines VC. However, the company’s failure to scale and its financial troubles ultimately led to the distress sale of its assets.
New Leadership at Moksha Group
In a bid to bolster its position, Moksha Group has appointed e-commerce veteran Rehan Shaikh as its co-founder and CEO. Shaikh’s experience in the e-commerce industry is expected to bring valuable leadership as Moksha works to integrate Arzooo’s assets and push forward its mission to support small retailers.
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