Pakistan’s B2B e-commerce startup Jugnu and MENA-based Sary have formed an alliance to transform the future of B2B e-commerce through an initial strategic investment of $22.5 million, accelerating Jugnu’s growth and expansion.
This strategic investment in Jugnu’s Series A round, led by Sary with participation from Sarmayacar and Systems Limited, will enable Jugnu to accelerate the development of its B2B eCommerce ecosystem in Pakistan and strengthen the retail supply chain, lighting up the livelihoods of 1 million+ small and medium enterprises that constitute a sizable chunk of Pakistan’s economy.
“Jugnu has focused on developing strong capabilities and moats in key markets during the last 18 months, leveraging our product-market fit to grow rapidly during this period. This round of investment will enable us to expand our team, ramp up our technological platform, expand product offerings and extend our geographical footprint,” said Sharoon Saleem, Co-Founder and CEO of Jugnu.
Pakistan has over one million kiryana stores that lack access to convenient inventory procurement. Over two-thirds of the retail stores are never serviced directly by any organized distribution channel.
Jugnu was founded in 2019 with the singular goal of helping small and medium-sized enterprise (SME) owners realize their full earning potential by making business easy for them. With constant innovation, Jugnu has been able to accelerate its growth, directly covering an effective customer base of over 30,000 kiryanas across Lahore, Rawalpindi, Islamabad, with expansion to other major cities underway.
Jugnu has differentiated itself by focusing on becoming the one-stop-shop for Kiryanas with a wide range of product assortment through its app, connecting manufacturers directly with Kiryanas. The startup has also extended its product offering to include BNPL to Kiryanas. The offering has met with success and will soon be expanded even further.
Commenting on the investment, Mohammed AlDossary, Co-Founder and CEO of Sary, said, “In a relatively short period of time, Jugnu is rapidly positioning itself as the platform of choice for kiryanas across Pakistan’s cities, demonstrating strong traction amongst its customers. As they continue to realize the market opportunity Pakistan brings, I look forward to working closely with Jugnu’s leadership to unlock the possibilities of local trade, bridging efficiency gaps in MENAP and beyond.”
Founded in 2018, Sary has successfully consolidated its market-leading position, growing rapidly in Saudi Arabia in 2021. Following its acquisition of the Egyptian B2B food and grocery marketplace, Morrawid in March, the startup is poised to become the gateway to enable frictionless commerce between producers and businesses in the Middle East, North Africa, and Pakistan (MENAP).
The strategic investment and alliance with Sary paves way for consolidation in the B2B space in MENAP, providing both companies with the ability to leverage diverse expertise and talent transfers across the region.
Speaking about the alliance with Sary, Sharoon Saleem, Jugnu’s Co-Founder and CEO, added, “Our new alliance with Sary will be a great boost for Jugnu. We’ve established a foothold in our existing operating cities with a rapidly growing customer base, and Sary will help us accelerate the development of our platform to connect producers and businesses, thereby ensuring SMEs in Pakistan have access to the best, most competitively priced goods at a single tap.”
“Both Sary and Jugnu stand to gain from a MENAP-wide knowledge and talent network, by which employee exchanges will bring our teams closer together, leverage complementary expertise, and build an interdisciplinary skillset needed to create a frictionless B2B eCommerce gateway across the region,” he added.