Getting raw materials is a major pain point for Pakistani manufacturers, who have to make multiple phone calls with suppliers while waiting for tariffs, Zayare founders say. The startup, which operates a platform that connects manufacturers directly with suppliers, announced today that it has raised $2.1 million in pre-seed funding from Tiger Global and Zayn Capital. This is the first time Tiger Global has made a pre-seed investment in a Pakistani startup. Other investors include +92 Ventures, Alan Rutledge, Jack Rizvi and current and former Careem employees.
The startup was founded in late 2021 by Taha Iqbal Teli, Hashair Junair Ahmedani and Ahshan Ali Khan, who went to school together. Zaraye provides production companies with working capital in addition to raw materials. It currently serves the textile and construction industry, with more than 300 partners and suppliers in approximately 20 cities.
Teli and Khan worked together at Careem, Swvl and other companies, while Ahmedani’s family worked in conventional manufacturing. “The manufacturing sector in Pakistan has been working with very fringe innovations for decades, with WhatsApp being the only notable change in the way processes have evolved. Zaraye plans to change that,” Khan said.
Zaraye .’s app
Materials on the platform include cotton yarn, which CEO Khan told TechCrunch is the largest raw material used to make finished fabric in the textile industry. Zaraye supplies cement, sand, gravel and crushed stone for construction. The company focuses on smaller manufacturers, whose annual sales range from $250,000 to $2 million USD.
Usually, manufacturers contact intermediaries or directly with suppliers and wait for them to provide rates. On the other hand, Zaraye gives more autonomy to manufacturers by allowing them to post their requirements and wait for quotes from suppliers. For suppliers, this means they can see the consolidated demand from Zaraye’s network of buyers.
Based on data collected by Zaraye of Pakistan Credit Rating Agency, Pakistan’s industrial manufacturing sector contributes 20% of the country’s economy with $35 billion of raw material annually, with raw material contributing 60% to 65% of the total costs for manufacturers, who have to deal with small net margins.
This post Pakistani Zaraye, a B2B delivery platform, raises $2.1 million from Tiger Global and Zayn – TechCrunch
was original published at “https://techcrunch.com/2022/04/14/pakistans-zaraye-a-b2b-supplies-platform-raises-2-1m-from-tiger-global-and-zayn/”
