Rider, a logistics startup based in Karachi, raised an additional $3.1 million seed funding from Y Combinator, i2i Ventures, Soma Capital, Flexport Fund, Rebel Fund, Global Founders Capital, Fatima Gobi Ventures, and TPL E-Ventures.
Previously, it raised $2.3 million in seed funding from Global Founders Capital, Fatima Gobi Ventures, TPL E-Ventures, Transhold, and Asian Development Bank.
Elevator Pitch: Last-mile delivery service for online retailers.
Make me care: Pakistan’s retail market is estimated to be worth approximately $52 billion.
The e-commerce market in Pakistan makes up a small but rapidly growing portion of the overall retail market, estimated to be worth $2.1 billion in 2020 and growing at a rate of 20%.
E-commerce relies on dependable delivery partners and fast delivery times, so robust logistics are essential. The logistics sector, however, is highly fragmented and inefficient, even though it is one of the key engines for e-commerce growth.
Rider claims to offer a robust end-to-end experience, eliminating the inefficiencies of more prominent logistics companies.
Tell me more: With the help of its digital fleet and sorting hubs, Rider is building a network of delivery centers.
Sellers can use its platform to offer next-day delivery, live tracking, and scheduled pickups for buyers.
Its clients include Khaadi, Daraaz, Maria B., and Unilever.
By the numbers: Rider claims that since its earlier seed round in October of 2021:
- Monthly revenues have grown 110%
- Customers have increased 100% to 650 online sellers.
- And three million orders were delivered to 60 cities in Pakistan.
You should know: Salman Allana founded Rider in 2019. In his previous life, he served as Head of Strategy at UPS Pakistan.
To date, Rider has raised $5.4 million in disclosed funding.
Zoom out: Rider currently operates 16 hubs, covering 60 cities across the country, which allow it to capture 60% of the e-commerce market in Pakistan.
To optimize the last mile further, it plans to use the fresh funding to expand its network of delivery centers in each city to improve overall turnaround time.
Furthermore, it plans to offer online sellers tools to help them grow, like e-commerce plug-ins and built-in wallets.