Ex-Careem exec’s B2B marketplace lands $3.5m in SOSV-led round

Dastgyr, a marketplace that connects suppliers with mom and pop retailers in Pakistan, announced that it has raised a US$3.5 million in a seed round led by venture capital firm SOSV.

Dastgyr co-founders Zohaib Ali (left) and Owais Qureshi / Photo credit: Dastgyr

ADB Ventures, Seedstars, and Edgebrook Partners also took part in the financing round, marking their first investment in Pakistan. Other investors including Zayani Venture Capital and Tricap Investments, also injected money into the Karachi-based firm.

To date, Dastgyr has raised a total of US$4 million. The new funds will be used to improve its tech stack, scale operations, and acquire customers. Part of the fresh capital will also go towards launching the company’s new fintech solutions, which includes a buy now, pay later option.

Dastgyr allows retailers to order over 2,000 stock-keeping units of wholesale inventory along with guaranteed next-day delivery and telephonic helpline support. Fast-moving consumer goods, stationery products, and mobile accessories are some of the categories available on the company’s app.

Its team comprises former members of tech startups like Daraz, Careem, and Airlift. Currently, Dastgyr’s headcount stands at about 280 employees.

“Pakistan is seeing the same patterns as India five years ago and China 10 years ago: With 75% of the population owning a smartphone, the first movers in mobile-first services will be the winners,” said William Bao Bean, general manager at SOSV.

See also: A David vs. Goliath battle in Vietnam’s B2B ecommerce sector

Currently operating in Karachi and Lahore, Dastgyr has served about 30,000 customers since its launch in 2020. The company said that at present, its investment to gross merchandise value ratio is US$1:US$58. So far, it has clocked 5,240 daily active users at an average of 10,000 daily sessions.

Typically, the average small and medium-sized enterprise (SME) retailer has a total monthly working capital of US$2,000 to US$3,000 with no access to external funds, the company said in a statement. Dastgyr is preparing to roll out microlending products, which can be used by SMEs as working capital.