Trax, a Pakistani delivery startup, raised $3.7 million in seed funding, the round was led by US-based Amaana Capital and Tricap Investments of the United Arab Emirates, along with angel investors including Omer Ismail (CEO of One, a Walmart-backed fintech) and Jahanzeb Sherwani (a Silicon Valley tech entrepreneur).
Trax Aims to Enhance Financial Inclusion in Pakistan
Trax Founder and CEO Hassan Khan said; “We have built Trax with hard work and passion while funding ourselves because of our strong belief in the model.” Trax was founded in 2017 and got its start when venture funding was almost non-existent in the country, it is now one of the most prominent players in Pakistan’s e-commerce ecosystem.
Hassan said that the funding will allow us to accelerate our journey as we continue to solve problems for the e-commerce and logistics industry through our tech solutions. “Our new partners will help open doors for us to markets outside Pakistan and guide us to launch new verticals as we take the firm from a logistics company to one that solves connectivity issues and enhances financial inclusion in Pakistan,” he added.
The Decline in Startup Funding
Over the past few years, Pakistan has witnessed a decline in startup funding. This is primarily due to several reasons, including economic instability, political uncertainty, lack of government support, and the overall state of the startup ecosystem in the country. These reasons have resulted in a lack of investor confidence and a general reluctance to invest in startups, as investors are wary of the potential risks involved.
Also read: Pakistani Edtech Startup Maqsad Raises $2.8 Million in Seed Funding
