Truck It In, a logistics firm based in Pakistan has raised $13 million in seed capital, the most for a logistics startup in the Middle East, North Africa, and Pakistan.
Global Founders Capital and Fatima Gobi Ventures have joined up to lead the seed round for the Karachi-based startup. Picus Capital, Millville, Wamda, Zayn Capital, i2i Ventures, ADB Ventures, Cianna Capital, Reflect Ventures, and K3 Ventures are among the other investors in the round.
Pakistan, one of the world’s greatest untapped markets, is experiencing a startup funding frenzy, with more than $350 million raised last year, more than in the previous six years combined. The majority of the country’s transportation needs are met by trucks, with train cargo being essentially non-existent. According to the startup, Pakistan’s freight business is worth $25 billion per year.
The business is targeting Pakistan’s small and medium-sized truck operators, who account for 80% of the country’s fragmented market. It’s not uncommon for drivers to have to wait days or weeks for an order.
“The trucking industry in Pakistan is fragmented, with several intermediaries operating at various levels, presenting an enormous opportunity for disruption,” said Kalsoom Lakhani, co-founder of i2i Ventures. “We are able to lower costs, increase efficiencies, and improve access for both shippers and truckers,” says the startup.
The company, which connects drivers with shippers, was founded two years ago. Careem Inc., a ride-hailing company based in Dubai, brought the three founders together. It is presently on a hiring drive to increase its employment to over 400 people.
In a phone conversation, Muhammad Sarmad Farooq, chief executive officer of Truck It In, remarked, “There is so much low-hanging fruit.” “After getting the fundamentals and infrastructure in order, the company will grow aggressively.”