BridgeLinq Raises $10M Seed Funding - Pakistan's Largest

BridgeLinx Secures $10 Million Seed Funding

BridgeLinx, a digital freight marketplace based in Lahore, Pakistan, has announced a $10 million funding round. This represents the largest seed financing achieved by a Pakistani startup to date.

Investment Details

The financing round was co-led by 20 VC, managed by Harry Stebbings, Buckley Ventures, spearheaded by Josh Buckley, and Indus Valley Capital. Salman Gul, co-founder and CEO of BridgeLinx, confirmed the rapid completion of the funding process to TechCrunch.

This investment marks the second lead investment in Pakistan for both 20 VC and Buckley Ventures in recent weeks, following their participation in an $85 million round for quick-commerce platform Airlift. Indus Valley Capital, having also recently invested in B2B marketplace Bazaar, continues to be a key player in high-profile investments within South Asia.

Additional Investors

Wavemaker Partners, Quiet Capital, TrueSight Ventures, Soma Capital, Flexport, Magnus Rausing’s UNTITLED, and the founders of Convoy and Bazaar also contributed to this funding round.

Platform Functionality and Operations

BridgeLinx is developing a digital marketplace designed to connect shippers – including manufacturers, cement factories, and textile companies – with trucking companies and private vehicle fleets.

The platform provides technological solutions for document verification, ensuring timely pickups, managing port operations, and guaranteeing cargo safety. Gul, formerly of KPMG Canada, highlighted these features.

Thousands of carriers are currently registered on BridgeLinx, facilitating the movement of numerous freight loads weekly for a growing number of significant clients.

Addressing Inefficiencies in Pakistan’s Trucking Industry

Pakistan’s trucking sector, similar to India’s, suffers from substantial inefficiencies that hinder economic growth.

A major challenge for truckers is the lack of return loads after completing a delivery. For example, a truck traveling from Islamabad to Lahore often returns without cargo, representing a long-standing cost to all parties involved.

Startups like BridgeLinx are focused on improving the efficiency of this system, according to Gul, who has studied the expansion strategies of companies like Convoy, BlackBuck, and Rivigo.

Future Plans and Operational Model

Currently, BridgeLinx operates on an asset-lite model, meaning it does not own any vehicles. However, Gul indicated a potential shift towards incorporating elements of Rivigo’s model, which involves owning a fleet of trucks.

Owning vehicles would allow BridgeLinx to ensure continuous operation of its platform by utilizing multiple drivers in rotating shifts.

“Our goal is to combine the strengths of both BlackBuck and Rivigo,” Gul stated.

The newly acquired capital will be used to expand into new sectors and enhance the platform’s technological capabilities. The company is also actively recruiting additional personnel.

Industry Perspective

Aatif Awan, managing partner at Indus Valley Capital, commented, “BridgeLinx has successfully streamlined end-to-end freight operations, attracting leading businesses in Pakistan.”

“We are confident in this team’s ability to significantly improve the country’s economic efficiency and are excited to support their journey.”

Emerging Investment Trends in Pakistan

It is noteworthy that Stebbings and Buckley are among the first investors to actively support startups in Pakistan, while several prominent Asian venture capital firms – including Sequoia Capital India, Accel, and Lightspeed – have yet to enter the market.

Currently, the timing appears optimal for investing in Pakistani startups. Internet access has increased substantially over the past decade, and numerous companies are establishing the foundational infrastructure for commerce, logistics, and payment systems.

Prosus has invested in one Pakistani startup, ride-hailing service Bykea, and recently made its initial investment in Bangladesh through commerce platform ShopUp, which also counts Sequoia as an early investor.