Moksha Group has acquired the assets of Arzooo, a struggling B2B consumer electronics startup founded in 2016 by former Flipkart executives Khushnud Khan and Rishi Raj Rathore. The financial details of the deal remain undisclosed. Despite raising significant funding, Arzooo faced severe challenges, including escalating losses, cash flow issues, and a funding crunch that left the company in a precarious position.

The acquisition grants Moksha Group access to Arzooo’s technology platform, intellectual property, and private label brand. Additionally, Rehan Shaikh, a former Cloudtail and Amazon executive, has been appointed to lead the acquired business. Sources reveal that Arzooo’s troubles began after overspending during last year’s Diwali sales, offering heavy discounts and incentives to retailers. These aggressive strategies, coupled with blocked seller payments and the withdrawal of a critical credit line, forced the company into a capital crunch, leaving acquisition as the only viable option.