Bazaar Raises $70 Million As It Proves Targets Can Make It Big In Pakistan
Pakistanbased bazaar b2b 70m: Saad Jangda and Hamza Jawaid, the founders of Bazaar, always had lofty goals for their company, which today announced the successful conclusion of a $70 million Series B investment round.
According to Jawaid, “We wanted to build an excellent company in Pakistan that people would want to work with.” We were pretty aware of the perception that you had to leave Pakistan to succeed because we both had the good fortune of receiving a solid education and having spent time working abroad.
“This fundraising sends a tremendous message,” says Jangda. “It shows that you can develop successful, scalable firms in Pakistan, which should encourage other founders and company owners.”
The company has undoubtedly made progress in a short period. Childhood pals Jangda and Jawaid did not have Bazaar up and running two years prior. They were still hunting for a significant concept that would allow them to grow their company to the size they desired.
They focused on Pakistan’s retail industry, whose extreme inefficiency and fragmentation offered a significant opportunity for a technology-enabled solution. Bazar was introduced by the two in June 2020. “We wanted to build a firm that would define a generation and put Pakistan on the world stage,” says Jawaid.
Bazaar targets Pakistan’s approximately 5 million small and medium-sized retailers. The founders of pakistanbased bazaar b2b 70m these companies quickly realized how difficult it would be to obtain supplies for them because of their intricate supply chains.
Which could require them to receive 30 or more small deliveries per day. Some basic supplies, like flour and sugar, even required buying from nearby wholesalers, forcing retailers to close their doors while they were away.
Bazaar provides a complete procurement solution as an alternative. Retailers can choose from thousands of stock goods listed on the Bazaar platform using a straightforward digital interface accessible via a smartphone app, with next-day delivery assured.
They are suddenly purchasing most of their inventory from a single supplier, receiving it in a single delivery, and frequently at lower costs – not the least because they no longer need to work with several intermediaries.
Bazaar has made the service available to shopkeepers in 21 cities and towns across Pakistan, where it has set up the necessary logistics and infrastructure.
It makes it possible to collaborate with retailers serving 30% of the population, providing them with goods from consumer and packaged goods manufacturers, wholesalers, and other suppliers with whom it has negotiated volume discounts.
It’s all about value and convenience, adds Jawaid. Retailers are replacing for pakistanbased bazaar b2b 70m their complex supply networks with a single point of purchase, and they also have access to savings thanks to Bazaar’s purchasing power.
Jawaid acknowledges that the concept gained traction among shops more quickly than the creators had anticipated, but this pushed Bazaar to consider other offerings.
It introduced Easy Khata last year for the retailers it works with, many of which still store most of their records on paper. Bazaar says retailers can professionalize their companies by digitizing payments, procurement, and consumer involvement.
- Also, the product generates enormous volumes of data regarding the operations of the platform’s sellers. As a result, Bazaar was able to develop Bazaar Credit, which provides shops with short-term working capital loans.
- Many of these retailers had battled for a long time to obtain services from the banking industry.
- We have a thorough understanding of their credit histories, says Jawaid. Our non-performing loan rate is nil since we lend them this way, allowing them to use our procurement platform to purchase more.
- Retailers throughout pakistanbased bazaar b2b 70m the country are showing great interest in combining these services. In 500 cities and towns, Bazaar has already added 2.5 million businesses to Easy Khata. Several companies can join up for that as it expands its procurement service to more of the nation.
- According to today’s news regarding a fundraising campaign, the company can quicken that procedure. It plans to expand its logistical infrastructure to serve retailers nationwide in 50 towns and cities.
- Bazaar will be able to broaden its product offering and provide retailers with services in new categories thanks to the increased financial muscle.
- The company first concentrated on grocery stores and believed it could also work with companies in the fashion, electronics, and pharmaceutical industries.
- For investors Dragoneer Investment Group and Tiger Global Management, who is leading Bazaar’s Series B investment, it’s a promising possibility.
- The most recent investment will bring the company’s total cash raised since its founding to more than $100 million.
- Tiger Global Management partner John Curtius states Pakistan’s tech sector is “near an inflection moment in its development.” “Bazaar is using the enormous merchant opportunity and is driving the movement in the nation.”
- According to Jangda and Jawaid, they are getting closer to realizing their goal of demonstrating. That successful business owners can succeed in Pakistan without leaving the country.
- A recent study at Pakistani universities identified Bazaar as the startup company students most desire to work with after graduating. The company’s creators hope many people will join it and learn what it takes to create a successful business.
- People frequently enquire as to what our top metric is,” explains Jangda. “In five years. We’ll be looking at the number of people that Bazaar has inspired and assisted to begin their enterprises. Not sales growth or profitability.”
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