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Saturday, October 1, 2022

How Bazaar in less than two years raised over $100 million to become best-funded startup in Pakistan

B2B marketplace Bazaar aims to digitize Pakistan’s retail via e-commerce, fintech, and last-mile supply chain solutions.

Bazaar has raised $70 million Series B fundraising after the B2B marketplace netted $30 million in largest Series A round in Pakistan in August of last year. The latest round was led by two investors, Dragoneer Investment Group and Tiger Group. The investors are joining a growing list of well-known investors who are betting big on the South Asian sector.

Existing investors such as Indus Valley Capital, Defy Partners, Acrew Capital, Wavemaker Partners, B&Y Venture Partners, and Zayn Capital joined the current round, bringing the company’s total funding to over $100 million.

Pakistani startups raised $375 million in 2021, 2 x times more than the last 6 years combined

Bazaar is aimed at Pakistan’s estimated 5 million small and medium-sized retailers. The founders realized that these businesses faced a significant procurement challenge, dealing with complex supply chains that could involve receiving 30 or more small deliveries per day; some basic materials, such as flour and sugar, had to be purchased from local wholesalers, forcing retailers to close shop while they were out.

Bazaar marketplace
Bazaar marketplace

Bazaar, on the other hand, provides an all-in-one procurement solution. Retailers can choose from thousands of items offered on the Bazaar platform using a simple digital interface accessible via a smartphone app, with assured next-day delivery.

The marketplace is currently serving retailers in 21 towns and cities of Pakistan through more than a dozen fulfillment centers.

They’re suddenly sourcing the majority of their product from a single supplier, receiving it in a single delivery, and often at lower costs – not least because they’re no longer dealing with a slew of middlemen.

The business intends to use the new funds to expand to new locations in Pakistan and establish new marketplace categories. It’s also expanding its lending capabilities and looking into new product lines.

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