Arzooo.com, a reverse auction platform, recently raised Rs1.5 crore in a seed funding round from Omphalos Ventures India.
The funds raised will be used to develop the platform’s technology and expand its operations to the top most prominent cities in India by March 2019.
Arzooo.com was founded by two former Flipkart employees, Khushnud Khan and Rishi Raj. The startup recently boomed in India’s e-commerce ecosystem in July 2017 with their unique reverse auction model which provides high value buyers with the lowest price on designated products, therefore beating down the competition in other online platform.
Since inception, the startup caters over 2,000 customers with an average ticket size of Rs 22,000 on high quality branded products and report a monthly run rate of Rs 7 million.
“The Arzooo team has a deep understanding of India’s consumer market for high value goods and has a grand vision of expanding this segment in the country. They are making good inroads with their unique business model. To have an e-commerce disruption coming from India is very exciting and empowering. We, at Omphalos Ventures, are proud of our association with such a game changing concept and team,” said Sagar Ramteke from Omphalos Ventures India.
“The aim is to enable buyers to get the best possible price on a product they wish to purchase, by making the suppliers compete for each order. Response to our first category, large appliances is hugely encouraging and a great validation for the platform. We are evaluating our next line of categories as we see anything in the price range of Rs 10 thousand to 10 Lakh as a potential opportunity for a reverse auction platform like Arzooo,” said founder and CEO of Arzooo.com, Khushnud Khan.
“We are also expanding our operations to Hyderabad, and other South Indian cities will follow soon. The plan includes expansion of services to the top 10 Indian cities by the end of the current financial year. Our goal is to take this service to top 50 Indian cities across categories in the next three years,” the CEO added.