Trax, a Karachi-based e-commerce logistics startup, has raised $3.7 million in seed funding from Amaana Capital, Tricap Investments, and PNO Ventures.
Make me care: Pakistan’s B2C e-commerce market is expected to reach $12.5 billion in 2023, according to Research and Markets. And it is expected to grow steadily with a 10.70% CAGR from 2023 to 2027.
Infrastructure challenges in the country include inadequate roads, unreliable transportation systems, and limited access to rural areas. Someone must ensure that the products are delivered efficiently and quickly from sellers to buyers.
Not only that, cash is the preferred payment method for 90% of e-commerce transactions in the country. Orders must be shipped and delivered before sellers can get paid. And it can take a long time for the seller to receive payment after the order has been delivered and cash collected.
Trax believes it can deliver products efficiently and quickly with seamless payments using its end-to-end logistics and supply chain solution.
Tell me more: Trax claims to have built Pakistan’s third-largest delivery network serving 7,000 e-commerce merchants and clients in the banking, pharmaceuticals, FMCG, and manufacturing industries.
Payments can be accessed within 24 hours, making the cash-on-delivery process as seamless as possible.
It offers sellers various services, including last-mile delivery, reverse logistics, and warehousing. It has also partnered with international logistics companies to provide global delivery solutions.
You should know: Trax was founded in 2017 by Asad Abdulla and Muhammad Hassan Khan.
Before raising funding, it was bootstrapped. It laid off 50 people in July last year as sales slowed and costs increased.
What’s next: With the fresh funding, Trax plans to expand its operations in Pakistan by leveraging its new investors’ expertise. It will invest in developing its existing products, hiring more employees, and exploring new opportunities in the market. It also plans to look into international expansion soon.
Trax competes with PostEx ($8.6 million in funding) and Rider ($5.4 million in funding).
