Pakistani startup Tazah raises additional $4.5m to close pre-seed round at $6.5m

Published December 22, 2021
Mohsin Zaka (L) and Abrar Bajwa (R), co-founders of B2B agriculture marketplace Tazah. — Photo by author
Mohsin Zaka (L) and Abrar Bajwa (R), co-founders of B2B agriculture marketplace Tazah. — Photo by author

Tazah, a B2B agriculture marketplace in Pakistan, announced on Wednesday that it has raised another $4.5 million in a pre-seed round after last raising $2m in October.

A statement issued by the startup said it was "Pakistan’s largest pre-seed round extension" and brought the total amount raised to $6.5m.

It added that the extension was co-led by Fatima Gobi Ventures (FGV) and Vibe Capital, with participation from Shorooq Partners, Nuwa Capital, Ru-net, Alter Global, Julian.Capital, Venture for Pakistan, Early Grey Capital and K3 Fund. The round also had participation from prolific Silicon Valley-based angel investors including Sahil Bloom, Siqi Chen, Matt Brezina, among others.

Existing investors including Global Founders Capital, Zayn Capital, i2i Ventures and notable angels also followed on in the round, the statement said.

Co-founder Abrar Bajwa told Dawn.com that with the new proceeds, the startup was aiming to offer working capital financing to fresh produce sellers and streamline the fresh produce supply by reducing the time between harvest and sale.

"We are excited to have the confidence of some of the most active investors in Pakistan. We are also grateful for all the value added by our existing investors and their continuous backing of Tazah.

"The new investments will help us accelerate our market dominance and execute some exciting projects that will help us improve our margins as we scale," the statement quoted him as saying.

Co-founder Mohsin Zaka said that the duo's experience leading large national teams and growing complex marketplaces helped them in rapidly scaling the business and build the capability to manage multi-city operations.

"We have also built a very strong founding team by acquiring the best talent from different industries," he said.

The two co-founders have previously held leadership positions at ride-hailing giants such as Careem and Swvl. They founded Tazah in August, basing its headquarters in Lahore and have already expanded operations into Karachi with another city launch on the agenda.

"Tazah has scaled operations to an annualised gross merchandise value of $7m in a little more than four months of operations," the statement said.

Ali Mukhtar, a general partner for FGV, said: "At FGV, we constantly envision Pakistan’s tomorrow, today — and that is the essence of Tazah, which is revolutionising Pakistan’s massive yet incredibly complex agricultural sector to solve inefficiencies in food and agri supply chains."

He added that what Tazah set out to achieve was "incredibly ambitious" but FGV couldn't wait to see what the startup did next.

Ankur Nagpal, founder of Vibe Capital, said they were most excited about the ability to build additional products — particularly financial products — for this market.

"Tazah is in a great position to start extending lines of credit to their business buyers that they pay off after reselling the inventory," he was quoted by the statement as saying.

Opinion

Editorial

Back to bedlam
Updated 25 May, 2022

Back to bedlam

FEAR tactics have never worked in the past, and most likely will not this time either. The government’s ...
25 May, 2022

Balochistan blaze

THE forest fire on the Koh-i-Sulaiman range in Balochistan’s Shirani area is among a series of blazes to have...
25 May, 2022

Unequal citizens

INDIFFERENCE would have been bad enough, but the state’s attitude towards non-Muslims falls squarely in the...
Updated 24 May, 2022

Marching in May

MORE unrest. That is the forecast for the weeks ahead as the PTI formally proceeds with its planned march on...
24 May, 2022

Policy rate hike

THE State Bank has raised its policy rate by 150bps to 13.75pc, hoping that its latest monetary-tightening action...
24 May, 2022

Questionable campaign

OVER the past couple of days, a number of cases have been registered in different parts of the country against...