A funding round led by United Arab Emirates (UAE-based) Tricap Investments will allow Trax to accelerate its growth.
The Pakistani company Trax which develops logistics for the digital economy revealed on Friday that it had raised $3.7 million from a group of strategic investors.
The financing was jointly led by Tricap Investments based in the United Arab Emirates (UAE) and Amaana Capital which is making its second direct investment in Pakistan. In addition to PNO Ventures, angel investors, including Omer Ismail, CEO of Walmart-backed fintech One, and Jahanzeb Sherwani participated in the round.
After receiving $360 million in 2021 Pakistani startups drew $350 million in 2022. The sum declared by Pakistani startups has increased to $15.2 million in 2023 thanks to the most recent fundraising round.
The funding will be used to expand logistics operations and introduce new technology-based business solutions.
With the money from the investment Trax will expand its logistics services and launch new industry sectors including fintech and technology.
Since its mid-2017 introduction, Trax a pioneer in Pakistani e-commerce has significantly contributed to the development of e-commerce in Pakistan by bringing cutting-edge logistical solutions and upending the lengthy payment cycles of legacy businesses.
We worked arduously and passionately to build Trax while supporting it ourselves because we believe in the model. As a result of this funding, we will be able to accelerate our journey as we continue to solve problems for the e-commerce and logistics industries with our technology solutions,” said Trax’s CEO and founder Hassan Khan.
As Trax transforms from a logistics company to one that solves connectivity issues and enhances financial inclusion in Pakistan our new partners will help us open doors to markets outside Pakistan.
Trax has Pakistan’s third-largest delivery network with more than 100 warehouses, hubs, and retail outlet locations all over Pakistan.
A line haul system for e-commerce by road was also pioneered by the company, which improved lead times and reduced costs for customers. With a team of over 2,000 talented individuals, Trax works with more than 7,000 e-commerce merchants as well as banks, pharmaceuticals, FMCG, and manufacturing companies to move their goods efficiently and quickly by Air, Train, and by Road all over Pakistan.
Trax’s innovative approach to logistics and commitment to providing high-quality solutions to their customers impressed Tricap Investments Suleman Soorani.
The Trax leadership team has a proven track record of delivering scale.
Aziz Hashim, managing partner at Amaana Capital, and other investors expressed confidence in the company’s ability to expand operations and become a leading logistics company in Pakistan.
Earlier, Maqsad, a Pakistani ed-tech company announced raising $2.8 million in a seed funding round while AdalFi a digital lending infrastructure based in Lahore raised $7.5 million while Swag Kicks a Karachi-based second-hand online clothing marketplace raised $1.2 million.
A few venture capital funds were interested in investing at a high valuation in 2021 but we were busy setting up our foundation at the time.
As a result of the global economic situation and political unrest in Pakistan, investors have recently reevaluated their plans to deploy funds in Pakistan. He said Trax’s numbers and journey have been impressive which eventually convinced them to go for it.