In a significant development for the mobility sector in Pakistan, BusCaro, a homegrown startup, has successfully raised $1.5 million in pre-seed funding. The funding round was led by Orbit Startups, with notable participation from Wahed Ventures and various angel investors.
BusCaro’s mission is to address the existing challenges in Pakistan’s public transport system, often plagued by inefficiencies, by providing a more affordable alternative to traditional taxis, rideshares, and rickshaws. Presently operational in major cities like Karachi, Lahore, and Islamabad, BusCaro plans to collaborate with the country’s extensive network of minivan and minibus drivers. The strategy involves forming partnerships with entities such as employers and schools to connect passengers with the 40,000 drivers in its network.
A typical journey with BusCaro costs around Rs150, a fraction of the Rs800 fare for rideshare vehicles or Rs1,400 for a traditional cab. Maha Shahzad, the CEO who founded BusCaro in October 2022, highlighted the economic benefits for both drivers and passengers. “When we fill the bus, the driver earns more than from driving the odd passenger, and the passenger gets a lower fare,” she explained. “Most importantly, the customer gets to their destination safely.”
The startup, with an impressive 20,000 daily bookings, is on track to achieve profitability by the first quarter of 2024. BusCaro aims for significant expansion, considering the potential market of up to eight million passengers across its current operational cities.
William Bao Bean, Managing General Partner at Orbit Startups, expressed his enthusiasm for BusCaro, emphasizing the company’s purpose-driven approach and growth potential. “We backed BusCaro because it enables women and men to book safe, inexpensive, and efficient shared transport to and from work, driving opportunities and opening up the overall economy.”
The recently acquired funds, led by Orbit Startups, will empower BusCaro to enhance its technological infrastructure further. Shahzad has ambitious plans to introduce new features for passengers and partners as the startup gears up for expansion. International markets have also captured the company’s attention as it looks to replicate its success beyond Pakistan’s borders.