Karachi-headquartered B2B ecommerce marketplace Jugnu and its parent company Saleflo have raised ~$3.2 million (PKR 518 million) from Systems Limited, a Lahore-based leading global technology, and business process outsourcing services provider. Some angel investors also participated in the deal. Systems made an investment of $3 million in exchange for a 20 percent stake in the company.
Salesflo had started in 2015 as a software company that built the country’s first cloud-based sales and distribution platform for FMCGs. It was founded by Yasir Suleman Memon, Sharoon Saleem, Syed Khurram Haider, and Ahsan Muhammad Khan, who collectively had tens of years of experience of working in the FMCG sector of Pakistan. The platform has worked with 40 enterprise FMCGs, pharmaceutical, and distribution companies, helping them access over 300,000 retailers across the country, through its software.
After learning from its experience of working with both FMCGs and retailers, Salesflo launched Jugnu in 2020, enabling small grocery retailers in the country to procure inventory for their stores. Currently available in Lahore, Jugnu serves thousands of grocery store owners through its mobile app and fulfillment centers – offering next-day delivery for all their purchases. The startup plans to use the latest funds to further expand Jugnu. It is in a highly competitive space with startups like Bazaar, Dastgyr, Retailo, and Tajir, who’ve raised tens of millions of dollars, also present in it.
With Systems, Jugnu has a found a strategic partner that can unlock many opportunities for it. It is one of the leading technology players in the country with a market cap of over $430 million. Systems also owns and operates OneLoad, a fintech that enables retailers to earn money by selling digital products – including mobile top-ups and payments of utility bills. The fintech already has over 100,000 merchants who use its services so there are a lot of synergies for Systems, OneLoad and Jugnu to work together, Salesflo and Jugnu’s co-founder Sharoon Saleem told MENAbytes.
A Systems representative commenting on the investment said that it is at enhancing their presence in the digital retail landscape of Pakistan and will provide them access to potential synergies in technologies and access to digital mapping of the retail universe.