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Thursday, April 18, 2024

Local startup receives mega funding of $8.6 million

Pakistan's e-commerce sector is taking off as the industry continues to rake in massive investment. A Lahore-based PostEx recently completed one of Pakistan’s biggest early-stage seed funding rounds of $8.6 million to expand its operations in the country.

A Lahore-based startup called PostEx recently banked in mega funding of $8.6 million, making it one of the country’s largest. A report by Bloomberg revealed that PostEx completed its early stage seed funding rounds.

To clarify, PostEx aims to assist e-commerce enterprises with working capital issues by offering cash before delivery. It also aims to financially help them run their businesses.

Founded in 2020 by Omer Khan, Saad Mahmood, Babar Razzaq, and Adil Naseem, PostEx offers online sellers upfront payments for their cash-on-delivery orders, for a fixed fee.

Due to its services, the startup has been receiving a lot of funding. Back in October, it raised $1.5 million in a seed round led by MSA Capital. This time around, Global Founders Capital led the fundraising. It also featured first-time investments from FJ Labs and RTP Global. Other investors included MSA Capital, VentureSouq, Alma Capital, and Zayn Capital.

Read more: Asad Umar congratulates Pakistani startup for raising record money

With the latest round of funding, PostEx plans to expand its operation in Pakistan. The CEO revealed that PostEx aims to expand the startup’s reach to 15-20 locations in Pakistan, add to its workforce, and launch other and more engaging products for the people’s benefit. It currently employs 150 people in Lahore, Karachi, and Islamabad – the majority of which are part of its logistics team.

Pakistan’s e-commerce landscape is changing

Important to note, Pakistan’s e-commerce sector is taking off as the industry continues to rake in massive investment. According to data published by the State Bank of Pakistan, the number of registered e-commerce merchants increased from 1,707 in 2019-20, to 3,003 in 2020-21, a 76pc increase.

Furthermore, Pakistani startups received a record total of $300 million in investment this year. Interestingly, experts predict that the funding will continue to grow. To clarify, last week, Indonesia’s ambassador to Pakistan announced that the country set a $50 billion e-commerce trade target by 2025 to connect with the biggest sector of global trade.

“There are vast opportunities in e-commerce trade between Pakistan and Indonesia, which will increase bilateral trade and investment opportunities on both sides,” Adam Mulawarman Tugio told the media.

Read more: Pakistan Post to capture major chunk of e-commerce deliveries

Interestingly, the credit goes to Covid for boosting the e-commerce sector. The frequent lockdowns halted in-person operations. As a result, many businesses moved online. Additionally, startups also increased.