Moksha Group Acquires Arzooo to Empower Small Retailers The acquisition grants Moksha Group access to Arzooo's technology platform, intellectual property, and private-label brand. Moksha aims to leverage these assets to empower small retailers with digital tools, fintech solutions, and affordable financing options.
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Mumbai-based Moksha Group has acquired the assets of Arzooo, a B2B consumer electronics startup, in a deal whose financial details remain undisclosed.
Founded in 2016 by former Flipkart executives Khushnud Khan and Rishi Raj Rathore, Arzooo initially thrived, raising approximately USD 85 million from prominent investors. However, operational missteps and a financial crunch forced the company to seek a buyer in what industry insiders describe as a distress sale.
Arzooo's troubles were compounded by aggressive expansion strategies, including deep discounts and incentives offered during last year's Diwali season. According to reports, the overspending led to a capital crunch, further exacerbated by a pulled credit line from a key lender.
Over the past year, the company laid off hundreds of employees, blocked seller payments, and faced mounting losses.
The acquisition grants Moksha Group access to Arzooo's technology platform, intellectual property, and private-label brand. Moksha aims to leverage these assets to empower small retailers with digital tools, fintech solutions, and affordable financing options.
Rehan Shaikh, a seasoned executive with stints at Cloudtail and Amazon, has been appointed as the new CEO to lead this transformation.
Arzooo, which claimed a presence in 250 cities with over 30,000 retailers on its platform, also recently launched gostor.com, an initiative to bring offline partner stores online. Despite its innovative approach, the company's financial struggles underscore the challenges faced by many Indian startups in the e-commerce sector.
For Moksha Group, known for its distribution, supply chain, and financial solutions, this acquisition is a strategic move to support smaller retailers in navigating a competitive market.
The deal also serves as a reminder that startups must prioritise sustainable growth and financial discipline to survive in an increasingly demanding ecosystem.
