Dragoneer Investments and Tiger Global, a startup looking to digitize Pakistani retail with e-commerce, fintech and last mile supply chain solutions, said today they are supporting the market by being major players in the South Asian markets.-Profile joins the growing list of investors. Market.
Both investors are leading Series B funding of $70 million. Existing backers including Indus Valley Capital, DeFi Partners, AQ Capital, Wavemaker Partners, B&Y Venture Partners and Zain Capital also took part in the new round, bringing the 1.5-year-old startup’s earnings to over Rs. 100 million.
The market is trying to create a so-called “traditional retail operating system” in Pakistan. It is a $170 billion market consisting of 5 million SMEs across the country.
But these vendors today are largely unbanked and out of work. Banks and other official financial institutions do not provide credit to these merchants because they do not have a credit rating. This gap forced many of these store operators to take out loans from shark loan providers.
For those who follow developments in South Asia, this task seems all too familiar.
A similar problem in India is being tackled by Udaan, the logistics startup ElasticRun and Dukaan, which helps stores go online, as well as dozens of startups and giants, including Reliance and Amazon.
The market combines many of these offerings.
The startup’s B2B e-commerce marketplace, through its network of a dozen fulfillment functions, helps merchants buy goods for sale in 21 cities across Pakistan.
These sellers also use the startup’s Easy Account app, which helps them with accounting records. The financial side of the market, called Market Credit, provides short-term working capital financing to these merchants, many of whom own convenience stores.
Merging many of its services makes sense for startups like Bazaar in Pakistan because it allows startups to offer more comprehensive value to the merchant, and the EZ account helps the company win customers, said Saad Jangda, founder of Co. interview with gaming-updates.
In August, “we just started testing our Credits product and then partnered with a third party,” he said. “Our loan product is now completely developed in-house and has digital support that connects to our last mile network. From the formation of an order to the issuance of a loan and the collection of money, everything is completely done by the market.”
“We get customers through Easy Khata, we channel them through commerce, and once we have enough merchant data, we start building a loan product out of it,” he said, having granted thousands of loans in recent months.
Easy Khata has brought together more than 2.4 million registered companies in 500 cities in Pakistan. “But more importantly, Easy Account serves as the primary entry system and also helps us launch in new cities,” he said.
The startup said merchants record more than $10 billion worth of accounting transactions on Easy Account each year. “Our expansion into Pakistan in recent months is a testament to how important a user-friendly account is to us,” he said.
The startup’s last mile network, which operated in just two cities last August, now connects three to four cities every month.
“The goal is to build for Pakistan. We aim to reach more than 100 urban and rural centers across the country and build the largest network in the country so that we can move goods of any category from point A to point B, where and when necessary.
The startup plans to use the new capital to expand its presence in other cities in Pakistan and launch new market categories. It is also working to expand its loan offerings and explore new product lines.
Childhood friends Saad and Hamza met a few years ago in Dubai. At the time, Javed worked for McKinsey & Company and Jangda worked for Careem as a product manager for taxis and food delivery. The opportunities he saw in his homeland led them back to the countryside to create markets.
“We are delighted to support the market’s drive to create an end-to-end trading and fintech platform for millions of non-bank and offline traders in Pakistan,” said Christian Jensen, partner at Dragoneer Investment Group. “The market pace of geographic expansion and new product development is a testament to the rare talent and culture that Hamza and Saad have developed in the market.”