E-commerce logistics startup Rider has secured $2.3 million in seed financing, the company announce in a statement today.
The seed round was led by Global Founders Capital, Fatima Gobi Ventures, and the Asian Development Bank, and TPL E-Ventures and Transhold also participated in it.
Rider offers logistics and transport services to e-commerce retailers via its online platform, and intends to use the new funds to expand its operations and offer services in new locations in Pakistan.
It was founded in 2019 by Salman Allana, who previously worked as the Head of Strategy and Business Development at UPS Pakistan, and served as the Assistant Vice President at Citi Bank.
The startup now has over 500 drivers in its fleet and operates in 80 cities in Pakistan. It said in a statement that it has delivered 1.5 million e-commerce parcels so far, and boasts a success rate of 93 percent while serving major clients like Daraz and Khaadi.
Rider’s website says that it offers fleet and route management optimization, operational efficiency and versatility, innovative delivery agent behavioral analysis, and smart hubs and delivery centers.
Its CEO, Salman Allana, said, “When we launched Rider, only 80-85 percent of the deliveries in Pakistan were making it to the customers’ doorsteps, translating millions of dollars lost, operational inefficiencies, and frustrated shippers and customers”.
“Our tech has improved this, while our operations identify and solve the underlying causes behind these stats. For instance, Rider’s in-house delivery agent behavioral analysis and geo-tagging processes help eradicate fake delivery attempts,” he said.
Allana explained that the new investment will allow the company to fulfill its long-term vision. “We’re excited about the investors we have onboard – they collectively bring unparalleled logistics industry expertise and emerging markets exposure,” he said.
“Their capital injection will enable Rider’s plans to expand our network and integrate our proven last-mile service into other key parts of the value chain. Ultimately, we want to build an end-to-end e-commerce logistics solution, complete with e-commerce enablement. Our vision is to be the number one logistics solutions provider for Pakistan’s e-commerce needs,” Alanna added.
Pakistan’s startup sector has received major investment deals in the past few months, including Airlift, which announced that it had raised $85 million in Series B financing — the largest in the MENA region, and Bazaar, which earned $30 million in Series A funding.
