Bazaar – a B2B marketplace operating in Pakistan – has raised US$30 million ($40.7 million) in a Series A round co-led by Singapore-based venture capital firm Wavemaker Partners and Silicon-Valley-headquartered Defy Partner.
This brings the total funding bagged by the startup to US$38 million.
Other investors that had participated in the latest round include US-based Acrew Capital, Japan’s Saison Capital and Zayn Capital from UAE.
They were joined by angel investors including current and former leaders of companies such as Antler, LinkedIn and Notion.
Founded in June 2020, Bazaar’s platform looks to help small-and-medium sized enterprises (SMEs) to procure inventory, manage their bookkeeping and access financial services.
More recently, the platform has been piloting a buy now pay later scheme, which it claims has doubled customer wallet share while attaining close to 100% repayment rates.
See also: Singapore-based Wavemaker Partners closes 3rd investment fund for SEA at US$111 mil
Since its launch, Bazaar has served over 750,000 merchants and says it has a 90% customer retention rate. The platform is presently available in Karachi and Lahore, the two largest cities in Pakistan.
With the country having some five million micro, small and medium-sized enterprises, the start-up has plans to use the fresh funds to make its mark in more cities across Pakistan.
It also intends to broaden its product stack and scale its financial services offerings.
“Bazaar is going after a massive opportunity with the ultimate aim of creating a generational story in and from Pakistan,” say founders Saad Jangda and Hamza Jawaid.
Jangda was formerly a product manager for ride-hailing and food delivery products at Careem while Jawaid was a management consultant at McKinsey.
The duo are looking to tap into the US$170 million fragmented retail industry in Pakistan, that is predominantly offline. They are looking to create a digital ecosystem for the industry and amid growing digital penetration in the country.
“We’ve been investing in FMCG (fast moving consumer goods) B2B marketplaces across the region since 2017. After working with [Jangda and Jawaid] over the past year, we’ve been impressed by their customer-centric approach to product development and the speed of their learning and execution,” says Paul Santos, Managing Partner at Wavemaker Partners.
Other startups serving small businesses in South Asia include Udaan and Khatabook, both of which are operating out of India.
Udaan helps small retailers purchase inventory from suppliers and wholesalers while Khatabook – which announced a US$100 million funding round on Aug 24 – helps companies to keep track of their finances and accept digital payments.
Cover photo: Bazaar
