Karachi-Based Second-Hand Clothing Startup Raises $1.2 Million Seed Funding

Karachi-based Swag Kicks has raised $1.2 million in a seed funding round led by foreign investors and local angel investors.

i2i Ventures led the funding round, which closed this week, with participation from TechStars Toronto, CrossFund, and other notable angel investors.

Venture capitalists see the funding round as a significant development as Pakistan struggles to ward off serious financial and economic challenges.

Co-founder of Swag Kicks Nofal Khan said, “The funds would be utilized to build up inventories and stocks, expand market outreach, and introduce innovative technology to manage growing demand”.

“We are the first to attract foreign funding, we have digitized Lunda (second-hand clothing) in Pakistan and selling used clothing and streetwear called “pre-love fashion” to customers across Pakistan. We are selling original global big brands at the lowest prices, which otherwise are not accessible for average Pakistanis,” he added.

Kalsoom Lakhani, co-founder and general partner at i2i Ventures commented, “International funding for startups is definitely still drying up in 2023, which is not helped by Pakistan’s macroeconomic environment. However, all these problems present enormous opportunities — Swag Kicks and plays in the circular fashion space are a great example of this”.

Misbah Naqvi, another i2i co-founder and general partner said, “The secondhand clothing market in Pakistan is large, but the supply side is very fragmented. The Swag Kicks team is able to operate at this scale because of the elaborate back end they’ve built, including an in-house warehouse Software as a Service (Saas) product that has tremendous potential”.

Swag Kicks plans to face problems caused by Pakistan’s rising inflation and shrinking spending for customers by increasing market penetration. The fresh seed round could just be the beginning.