Tazah, a Lahore-based B2B fresh produce marketplace startup, raised $4.5 million in pre-seed funding from Fatima Gobi Ventures, Vibe Capital, Shorooq Partners, Nuwa Capital, Ru-net, Alter Global, Julian Capital, Kinnow Capital, Early Grey Capital, K3 Fund, Global Founders Capital, Zayn Capital, i2i Ventures, and Angel investors Sahil Bloom, Siqi Chen, and Matt Brezina.
Tazah raised $2 million in pre-seed funding in October. This round of funding is an extension of that round from October. Tazah’s pre-seed funding now stands at $6.5 million.
Elevator Pitch: Farm to retail at a better price.
Tell me more: The agri-supply chain in the country starts with farmers who sell fresh produce to middlemen, who then sell it to wholesalers. Retailers buy it from wholesalers at an increased price because of the profit margins added by the middlemen and wholesalers.
Aside from this price hike, the deliveries are also handled in a primitive manner which impacts the quality and also adds to the cost.
Farmers, retailers, and customers are the ones that suffer because of this supply chain model while middlemen and wholesalers get the highest cuts.
Tazah provides a solution to these problems by eliminating the middlemen and wholesalers and connecting farmers directly with fruit and vegetable retailers.
It also has a storage and delivery service through which it delivers directly to the retailers so the product quality and the prices are better.
You should know: Tazah was founded by ex-Careem executives Abrar Bajwa and Mohsin Zaka in August this year.
The startup has expanded its operations to Karachi and claims to have grown to an annualized gross merchandise value (GMV) of $7 million since its launch.
Before you go: The funds will be used to expand locally and to introduce new financial products.
It faces competition from Jiye in the B2B agri-tech space.