Samreen Ahmad · · 2 min readTiger Global backs $2.1m round of Pakistani B2B startup
Zaraye, a Pakistan-based B2B marketplace for raw materials, has raised US$2.1 million in pre-seed funding from Tiger Global and Zayn Capital.
Team Zaraye / Photo credit: Zaraye
The startup said this is Tiger Global’s first pre-seed investment in the country.
Founded last year by Ahsan Ali Khan, Hashair Junaid Ahmedani, and Taha Iqbal Teli, Zaraye helps manufacturing businesses procure raw materials and finance working capital. It serves clients across the textile and construction industries, and it has more than 300 partners and suppliers in over 20 cities.
Buyers of raw materials can post their requirements on the platform and the relevant suppliers can send them quotes in real time. Suppliers can access consolidated demand volumes through the network of buyers on Zaraye’s platform.
Pakistan’s industrial manufacturing sector contributes 20% of the country’s economy. About 60% to 65% of the total costs for manufacturers is attributed to raw materials – the sector is valued at US$35 billion annually in the country, said Zaraye in a statement.
“Small and medium business owners have been trapped in a cycle of high competition and lack of financing options. Zaraye aims to help these businesses scale,” said Ahmedani.
See also: Fintech a bright spot in Pakistan’s breakout year
Other investors in the round include:
- +92 Ventures
- Jack Rizvi
- Current and former Careem employees
Update (May 25, 8.15 p.m. SGT): This article has an updated list of investors in Zaraye.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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