Mumbai-based Moksha Group has acquired the assets of Arzooo, a B2B consumer electronics startup, in a deal whose financial terms remain undisclosed. Founded in 2016 by former Flipkart executives Khushnud Khan and Rishi Raj Rathore, Arzooo had raised nearly $85 million from top investors before financial difficulties led to its sale.
Challenges Faced by Arzooo
Arzooo’s downfall began with aggressive expansion strategies, including deep discounts and incentives during last year’s Diwali season. These moves drained its resources, leading to a financial crisis. Matters worsened when a major lender withdrew its credit line, causing a capital crunch.
Over the past year, Arzooo laid off many employees, delayed payments to sellers, and faced increasing losses. Despite its innovative approach and a claimed presence in 250 cities with 30,000 retailers, the startup struggled to sustain operations.
Vision of Moksha Group
Through this acquisition, Moksha Group gains access to Arzooo’s technology platform, intellectual property, and private-label brand. Moksha plans to use these assets to provide small retailers with advanced digital tools, fintech solutions, and affordable financing.
Rehan Shaikh, a seasoned professional with experience at Cloudtail and Amazon, has been appointed as the new CEO. His leadership aims to drive the transformation of Arzooo’s assets into a platform that supports small retailers in a competitive market.
Arzooo had recently launched gostor.com to bring offline partner stores online, a move designed to connect retailers to the digital world. Moksha Group’s focus on sustainable growth and financial discipline may help small retailers access resources that were previously out of reach.
The acquisition marks a strategic move by Moksha Group to strengthen its position in the retail and financial services space. It also highlights the importance of balanced growth and careful financial management for startups in India’s challenging e-commerce ecosystem.
