Zaraye, a Karachi-based B2B raw materials marketplace, raised $2.1 million in pre-seed funding from Tiger Global, Zayn Capital, +92 Ventures, and multiple angel investors.
Elevator Pitch: Hassle-free raw material procurement and working capital financing.
Market snapshot: Approximately 20% of Pakistan’s economy is derived from manufacturing, accounting for $35 billion in raw materials annually. Raw materials account for 60 to 65% of the cost of making things in Pakistan.
Make me care: Sourcing raw materials for manufacturing is a multi-step process, each being complex and fragmented.
Dealing with go-betweens, running around to find the best prices, and last-minute quote changes.
It is lengthy, time-consuming, and offers very few options to buyers.
Leading to an inefficient procurement value chain.
Tell me more: Zaraye wants to solve this problem by creating a marketplace of buyers and sellers where buyers post product requirements and suppliers provide quotes in real-time.
Making buying decisions more effective and efficient.
Not to mention, suppliers gain access to Zaraye’s buyer network and access to demand data.
What are they saying: Managing Partner and Co-Founder of Zayn Capital, Faisal Aftab, expressed excitement to be a part of the startup’s journey.
“Procurement in the manufacturing industry is a massive problem with similar models showing immense success in comparable markets. We believe in the Zaraye team and their capabilities in solving this problem in Pakistan,” he said in a funding announcement sent to media outlets.
Numbers, please: Within just six months of launch, Zaraye has over 500 partners and suppliers in over 20 cities, serving clients across the textile and construction industries.
You should know: Zaraye was founded in 2021 by Taha Iqbal Teli, Hashair Junaid Ahmedani, and Ahsan Ali Khan.
Also, this is Tiger Global’s first investment in Pakistan at a pre-seed stage.
Before you go: Zaraye is available across platforms with their iOS, Android, and web app.
Big picture: Zaraye’s mission is to help manufacturers find opportunities to scale and optimize to compete in the global market.