Bazaar Raises $30 Million for Pakistan B2B Marketplace

Bazaar Secures $30 Million Series A Funding to Digitize Pakistani Retail

A Pakistan-based startup, focused on building a business-to-business marketplace and offering digital bookkeeping solutions for merchants, has recently achieved a significant funding milestone in the South Asian region.

Series A Round Details

Bazaar announced on Tuesday the successful completion of a $30 million Series A funding round. This represents the largest Series A investment ever secured by a Pakistani company.

The financing was spearheaded by Defy Partners, a Silicon Valley-based venture capital firm specializing in early-stage investments, and Wavemaker Partners, based in Singapore.

Investor Participation

A diverse group of investors contributed to the round, including:

• Current and former leaders from Antler, Careem, Endeavor, Gumroad, LinkedIn, and Notion
• New investors such as Acrew Capital, Japan’s Saison Capital, UAE’s Zayn Capital, and B&Y Venture Partners
• Existing investors Indus Valley Capital, Global Founders Capital, Next Billion Ventures, and Alter Global

Bazaar's Business Model: A Blend of Innovation

Bazaar’s approach can be understood as a combination of the models employed by Udaan and KhataBook, particularly for those familiar with the Indian startup landscape.

Hamza Jawaid, Bazaar’s co-founder, explained that the company benefited from observing developments in other emerging markets, not solely India.

He highlighted the synergistic relationship between commerce and digital bookkeeping. Khata serves as an effective customer acquisition tool, while also providing valuable business insights.

Market Reach and Services

Currently, Bazaar’s B2B marketplace, offering standardized pricing and an expanded product catalog, operates in Karachi and Lahore, Pakistan’s largest cities.

The Easy Khata digital bookkeeping service is available nationwide.

A Vast Untapped Market

Pakistan’s retail market, valued at $170 billion, presents a substantial opportunity due to its limited technological adoption, according to Saad Jangda, Bazaar’s other co-founder.

The founders, who have a long-standing relationship and reconnected in Dubai, previously held positions at McKinsey & Company and Careem, respectively.

Addressing the Needs of MSMEs

Pakistan is home to approximately 5 million micro, small, and medium-sized enterprises (MSMEs). Despite increasing internet access, a significant number of merchants remain unconnected, as revealed by the founders’ direct research.

Industry Recognition

Paul Santos, Managing Partner at Wavemaker Partners, praised Bazaar’s customer-centric product development and rapid execution, stating their investment reflects this confidence.

He expressed excitement about supporting Bazaar’s growth and its role in digitizing Pakistan’s retail sector.

Impressive Growth and Retention

Since its launch last year, Bazaar has onboarded over 750,000 merchants. Notably, the company boasts a 90% merchant retention rate.

Future Plans: Beyond the "Dukaan" Model

Regarding the potential for a “dukaan” (online storefront) product, Jangda indicated that the market is not yet sufficiently developed for such an offering.

He explained that consumer demand for B2C solutions is still emerging.

Focus on Financial Services

Bazaar is currently prioritizing the development of financial services, having recently tested a buy now, pay later (BNPL) product with a 100% repayment rate.

A Vision for Pakistan's Tech Future

The founders envision Bazaar as a catalyst for creating a lasting impact on Pakistan’s technology landscape, fostering a new generation of talent and innovation.

They aim to leverage the new funding to expand services to additional cities and develop new products.

Investor Confidence and Market Momentum

Kamil Saeid, Partner at Defy Partners, highlighted Bazaar’s impressive speed and robustness in building and deploying solutions, positioning it as a category-defining company in Pakistan.

This announcement follows a similar funding round by Airlift, another Pakistani startup, signaling growing interest from global investors in the South Asian market.