Sarmayacar, a Pakistan-focused VC has announced earlier this month that it has helped launch (and invested in) a trucking marketplace TruckSher. The VC firm did not disclose the size of capital it has injected into the startup. It also did not share the exact details about how much stake it owns in TruckSher but has confirmed to MENAbytes that it’s a majority. The firm normally invests in early-stage Pakistani startups by either leading the investment rounds or participating in them. It is the first time it has helped build a startup from scratch.
TruckSher is being led by Abid Butt, a serial entrepreneur who has previously built and led different companies. Launched in February earlier this year, the trucking marketplace connects shippers with truck owners and drivers to help them book their loads for transportation inside the country and beyond (Afghanistan). It is only of the many platforms that have launched (or expanded here) with the aim to bring order to the chaotic trucking industry of Pakistan. The startup told MENAbytes that it is currently doing over $200,000 in monthly transaction volume by working with 10 large clients.
What’s interesting here is the model Sarmayacar has followed to invest in this space. There have been many options to choose from but it decided to incubate a company, which is something we don’t see the local VC funds doing very often. Sarmayacar declined to share their explanation for choosing to incubate a startup over investing in an existing player.
TruckSher’s services are already being used by multiple conglomerates of the country, some of which happen to be limited partners in Sarmayacar’s debut $30 million fund. The startup plans to use the investment it has received from Sarmayacar to grow its fleet and clients and open more offices across the country.
Rabeel Warraich, the Managing Partner at Sarmayacar, said, “We are very excited about the TruckSher team and the business model. It is a very large sector and there is a lot of successful precedence across the world where digital freight networks have created efficiencies, higher jobs, and better service levels.”
Abid Butt, the co-founder and Managing Director of TruckSher said, “We feel the rapid scale and successful technology adaptation are key to ensure we are able to add value to our clients and member drivers. TruckSher will scale rapidly with offices across the land freight network, ports, industrial zones, and agricultural belts of Pakistan.”
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