Pakistani delivery e-commerce logistics startup Trax has raised $3.7 million in an early seed funding round led by US and UAE-based private equity firms.
The round was co-led by the US-based Amaana Capital, making its second direct investment into Pakistan, and the UAE-based Tricap Investments. PNO Ventures and angel investors, including the CEO of Walmart-backed fintech One Omer Ismail and Silicon Valley tech entrepreneur Jahanzeb Sherwani also committed to the round.
Key logistics player: Trax, one of the pioneering logistics players in the Pakistani e-commerce sector, was founded in 2017 by Asad Abdulla and Muhammad Hassan Khan. Trax is an end-to-end logistics and supply chain solutions provider for the e-commerce industry. The company offers last-mile delivery services across over 450+ destinations in Pakistan.
With the fresh funding, Trax plans to expand its operations in Pakistan and accelerate the growth of Trax’s logistics services and the introduction of new business verticals, such as fintech and technology solutions.
“This funding will allow us to accelerate our journey as we continue to solve problems for the e-commerce and logistics industry through our tech solutions,” said Trax Founder and CEO Hassan Khan. “Our new partners will help open doors for us to markets outside Pakistan and guide us to launch new verticals as we take the firm from a logistics company to one that solves connectivity issues and enhances financial inclusion in Pakistan,” Khan said in a statement.
Pakistan’s startup funding outlook 2023
Pakistani startups raised more than $345 million in venture capital funding in 2021, according to Techshaw’s deal tracker. In 2022, the startups in the country of 230 million raised $347.4 million down 5% from the previous year, shows data from Data Darbar that tracks investment flows into the country’s tech ecosystem.
- In early March, a fintech platform for Pakistan’s trucking industry called Trukkr raised $6.4 million in a funding round and received a non-banking financial company license.
- Also in March 2023, Pakistani edtech startup Maqsad announced raising $2.8 million.
- In February this year, Lahore-based fintech startup AdalFi raised $7.5 million.
- In February 2023, Swag Kicks, a Karachi-based secondhand online clothing marketplace, raised $1.2 million in a seed funding round led by i2i Ventures.
