B2B marketplace scores Pakistan’s largest series A with $37m raise

Dastgyr, a Pakistan-based B2B marketplace, has raised US$37 million in a series A funding round led by Veon Ventures, its first investment in the country.

Photo credit: Dastgyr

This round is also the largest series A round in Pakistan to date. Combined its seed round in 2021, Dastgyr has raised over US$40 million in total funding.

Founded in 2020 by Muhammad Owais and Zohaib Ali, Dastgyr helps Pakistan’s over 2 million retailers solve procurement problems by connecting them with manufacturers, distributors, and wholesalers, as well as providing next-day delivery and microloans.

The startup said it has grown 300% since its last funding, added more than 42,000 retailers across five cities, and expanded into new categories like construction and building materials.

Dastgyr told Tech in Asia that the company will use the fresh funds to improve its tech stack across the board. It is also looking to strengthen its Dastgyr Seller app and introduce a new lending feature to enable sellers to get access to external working capital.

The company also plans to launch in 15 new cities in Pakistan this year. As for international expansion, Dastgyr said it is in the process of analyzing market dynamics and user behavior in various emerging markets across Southeast Asia as well as the Middle East and North Africa.

See also: Fintech a bright spot in Pakistan’s breakout year

“We welcome the new investors to the Dastgyr family as we continue to work relentlessly toward our vision of building an Alibaba for emerging markets worldwide,” said Zohaib Ali, the startup’s co-founder.

Other investors in this round include:

• Zinal Growth Fund
• DEG
• Khwarizmi Ventures
• Oman Technology Fund
• Cedar Mundi Ventures
• Reflect Ventures
• Century Oak Capital
• Haitou Global
• GoingVC
• Astir Ventures
• K3 Ventures
• Chandaria Capital
• SOSV
• Edgebrook Partners
• EquiTie
• Founders of Property Finder, Ayoconnect, and Quiqup
• DoorDash’s senior management