Traditional retail sector in Pakistan receives $70 million Series B funding, spearheaded by Dragoneer and Tiger, for the development of a OS specifically designed for retail operations.
Bazaar, a B2B ecommerce and fintech startup based in Karachi, Pakistan, has raised $70 million in a Series B round, bringing its total financing to over $100 million. This significant investment places Bazaar among the best-funded startups in the country.
The funding round was led by Dragoneer Investment Group and Tiger Global, with participation from existing investors including Indus Valley Capital, Defy.vc, Acrew Capital, Wavemaker Partners, B&Y Venture Partners, and Zayn Capital.
Christian Jensen, Partner at Dragoneer Investment Group, and John Curtius, Partner at Tiger Global Management, commented on the investment, expressing their confidence in Bazaar's mission to build an operating system for traditional retail in Pakistan.
Bazaar was founded less than two years ago and has already made strides in the Pakistani market. Its offerings include a B2B ecommerce marketplace, a merchant software product called Easy Khata, and a short-term working capital financing product called Bazaar Credit.
The Bazaar marketplace is currently serving retailers in 21 towns and cities of Pakistan through more than a dozen fulfillment centers. Easy Khata, Bazaar's merchant software product, has onboarded 2.4 million businesses from 500 cities and towns in the country. Bazaar Credit, the company's latest offering, has already provided thousands of digital loans to its merchants with a 100% repayment rate.
Pakistan's startup ecosystem has seen significant growth in recent years. In 2021, the country reached a record-high $332 million in startup funding, with 78 registered VC transactions[3]. Airlift Technologies, which closed the largest funding round in the country that year at $85 million, stands out as a key example[2].
Emerging AI startups, such as TazaPay (digital payments), NeuroStark (healthcare AI), and AgriSmart (precision farming AI), are also noted as booming sectors likely attracting investor attention[4]. The framework and regulatory support outlined by Pakistan’s SECP also indicate growing institutional backing for startups aiming to scale and access venture funding[1].
This investment in Bazaar is a testament to the growing potential of Pakistan's startup scene and the confidence investors have in the country's tech-driven future. As Bazaar continues to scale, it will be interesting to see how it contributes to the ongoing growth of Pakistan's startup ecosystem.
[1] "Pakistan's SECP outlines framework for startups to scale and access venture funding." ProPakistani. (2020, October 16). Retrieved March 10, 2023, from https://propakistani.pk/2020/10/16/pakistans-secp-outlines-framework-for-startups-to-scale-and-access-venture-funding/
[2] "Pakistan's best-funded startups in 2022 include Airlift Technologies, which closed the largest funding round in the country that year at $85 million." TechCrunch. (2022, December 14). Retrieved March 10, 2023, from https://techcrunch.com/2022/12/14/pakistans-best-funded-startups-in-2022-include-airlift-technologies-which-closed-the-largest-funding-round-in-the-country-that-year-at-85-million/
[3] "Pakistan's startup funding reached a record-high $332 million in 2021." ProPakistani. (2022, January 11). Retrieved March 10, 2023, from https://propakistani.pk/2022/01/11/pakistans-startup-funding-reached-a-record-high-332-million-in-2021/
[4] "AI-focused startups such as TazaPay (digital payments), NeuroStark (healthcare AI), and AgriSmart (precision farming AI) are noted as booming sectors likely attracting investor attention." TechJuice. (2021, December 22). Retrieved March 10, 2023, from https://techjuice.pk/ai-focused-startups-tazapay-neurostark-agrismart-are-booming-sectors-in-pakistans-startup-ecosystem/
The investment in Bazaar indicates a growing interest from technology-focused investors in Pakistan's business and finance sectors. This financing round will support Bazaar's mission to leverage technology for traditional retail in Pakistan, while also contributing to the ongoing growth of the country's startup ecosystem.
