A delivery startup, Trax, on Friday announced that it has raised $3.7 million funding in an early seed round as it seeks to benefit from growth in the South Asian country’s nascent e-commerce market, Bloomberg reported.
The company raised $3.7 million in a round led by US-based Amaana Capital and Tricap Investments of the United Arab Emirates. Trax, founded in 2017, is one of the pioneering logistics players in Pakistan’s e-commerce sector and got its start when venture funding was almost non-existent in the country.
The startup economy is showing signs of life, with multiple rounds backed by global venture investors taking place this year. Venture funding in the country was little changed at $350 million last year when a rout in tech valuations left a slew of startups globally in trouble.
Trax does a million deliveries each month and employs more than 2,000 people. It plans to expand into new business verticals including fintech to increase financial inclusion in Pakistan.
The company aims to use the investment to accelerate the growth of its logistics services alongside the introduction of new business verticals such as fintech and technology solutions for its customers.
Pakistan’s startup economy is growing slightly last year, depsite all odds, funding for Pakistan startups remained passable with a slight decline of 7% in 2022 as compared to the last year.
Startup funding declined to $347 million from around $375 million in 2021. Investments in Pakistani startups upheld against all odds such as political challenges, currency volatility, devastating floods, high inflation and interest rates amid the Russia-Ukraine war causing energy and food price shocks, followed by global recession fears due to massive tightening, the report by Alpha Beta Core said.