Fintech Dastgyr raises $37m in Series A round for biggest investment yet at this stage in Pakistan – Business

Dastgyr, a Karachi-based B2B marketplace that connects suppliers and small retailers, announced on Tuesday that it had raised $37 million in Series A funding (the first round of funding for new businesses since seed capital) for its biggest investment. Still in Pakistan at this stage.

According to the press release, the round was led by VEON Venture, the corporate venture arm of Jazz Pakistan’s parent company, with a $15 million investment. Other participants in the round were Zinal Growth, DEG, Khwarizmi Ventures, OTF Jasoor Ventures, Cedar Mundi, Reflect Ventures, Century Oak Capital, Hi2 Global, GoingVC, Astir Ventures, K3 Diversity Ventures and Founder of Chandaria Capital and Property. Senior management at Finder, Ayoconnect, Quiqup and DoorDash.

The new funding round came less than a year after Dastgyr announced a $3.5 million seed round, the press release said.

Dastgyr claims it has grown 300% since then, adding more than 70,000 retailers across five markets and entering new categories such as building and building materials.

“We are very excited to achieve this milestone in the current global economic environment. We are proud of our growth, but even more proud that we have achieved this growth with high capital efficiency. In today’s world, the focus is on We are moving towards a unit economy, drainage and sustainability, but these have been our key areas of focus from day one.

He said financial inclusion, which is central to the startup’s mission, will enable and enhance Pakistan’s small and medium-sized retail entrepreneurs to potentially unlock up to an additional $10 billion to GDP.

According to the press release, VEON has announced that Dastgyr has joined Dastgyr now at a time when it aims to expand its post-pay service and also introduce loan products for sellers. With Jazz and JazzCash, Dastgyr adds that it will be able to scale its lending across Pakistan.

“As part of VEON’s transformation into a digital operator that provides an increasingly diverse range of services to our customers, we are investing in leading digital companies like Dastgyr in the countries in which we operate. These investments are implementing our strategy. do.

“Pakistan with a fast-growing digital sector is a key market for VEON. Combining Dastgyr’s e-commerce business with Jazz’s telecommunications network and JazzCash’s mobile payment platform will fuel the growth of digital services in Pakistan. This will be further enhanced by the ambitious digital banking services we are trying to provide,” said Mohd Khairil Abdullah, CEO, VEN Ventures, in a press release.

Dastgyr adds that it aims to launch 15 new markets in Pakistan along with the first international market in 2022.