Pakistani delivery startup Trax has raised $3.7 million in seed funding in order to capitalize on growth in the South Asian country’s budding e-commerce space, reported Bloomberg.
The round was led by Amaana Capital of the United States and Tricap Investments of the United Arab Emirates.
Trax, which was founded in 2017, is one of the pioneering logistics players in Pakistan’s e-commerce sector, and it began when venture capital was almost non-existent in the country. The company makes one million deliveries per month and employs over 2,000 people. To increase financial inclusion in Pakistan, it intends to expand across new business verticals such as fintech.
Pakistan’s startup economy is thriving, with multiple rounds of funding from global venture capitalists taking place this year. Last year, the total investment in startups fell to $347.44 million, down 5 percent from $365.8 million in 2021.
The deal count also declined to 70 during 2022, compared to 84 in 2021, amid a drop in tech valuations that put a slew of startups globally in jeopardy.
2022’s sector-wise breakdown shows that e-commerce led in funding value with $190.27 million raised across 16 deals. The amount was higher than the $174.6 million raised in 2021. Fintech topped the number of deals, raising $100.3 million across 19 deals while the transportation and logistics sector raised $28.1 million.