Indian startup Arzooo, which aimed to bring e-commerce capabilities to physical stores, has sold its assets to Moksha Group in a distressed sale. The deal comes after Arzooo engaged with several startups, including Udaan, to explore potential merger opportunities.

Arzooo, founded by former Flipkart executives, had raised $90 million from investors and reached a peak valuation of $310 million. The startup provided a digital bridge to small electronics retailers, enabling them to compete with e-commerce giants and large retail chains. It worked with major brands to secure bulk inventories at competitive prices and offered last-mile delivery and working capital solutions.

The acquisition positions Moksha Group to bridge significant gaps in India's rapidly evolving consumer durables and appliances sector. However, neither Moksha nor Arzooo disclosed the financial terms of the deal. The sale marks a significant development in the Indian tech ecosystem, highlighting the challenges faced by startups in the competitive e-commerce space.