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Thursday, May 23, 2024

Pakistani fintech startup Trukkr raises $6.4 million in seed funding

Trukkr, Pakistan’s trucking industry, raised $6.4 million in a funding round and received a non-banking financial company (NBFC) license.

Trukkr offers small and medium-sized trucking companies a transport management system and supply chain solutions. It also helps the company to digitize the unbanked and undocumented data of the industry.

The seed funding round was led by US-based Accion Venture Lab and London-based Sturgeon Capital. Moreover, Haitou Global, Al Zayani Venture Capital, and investor Peter Findley also participated in the round. 

The company’s business model is similar to Kargo in Indonesia, Solvento in Mexico, and Kobo 360 in Africa, but has adapted and transformed according to the local market.

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In its official statement, the company said that less than 5% of trucking companies using its platform have access to financial services. Therefore, they have to wait up to 90 days for payments, which makes it difficult for them to cover the costs of fuel, tolls, and truck maintenance.

The CEO and co-founder of the company, Sheryar Bawany, said that it was looking to launch financial products at a reasonable risk-adjusted spread to the benchmark Karachi Interbank Offered Rate (KIBOR).

Furthermore, the company’s co-founder Mishal Adamjee was of the view that there are 20,000 drivers on Trukkr’s platform, servicing 100 of the biggest companies in the country, including Shan Foods, Artistic Milliners, International Industries Limited, and Lucky Cement. 

Read more: HBL boosts financial inclusion in Pakistan with first Fintech Summit

He further elaborated that Pakistan’s $35 billion trucking industry is growing at 10% annually despite limited rail and water freight infrastructure.

Additionally, Investor Accion Venture Lab said;

“We want to bet on a company striving to tackle inefficiencies in a market filled with opportunities”

Moreover, the Board of Investment suggested that demand for freight transport will double by 2025 and increase six-fold by 2050 to 600 billion freight tonnes-kilometer, particularly as the China-Pakistan Economic Corridor flourishes.