A group of strategic investors has contributed $3.7 million to the seed financing of Trax, a LogiTech startup focused on logistics for the digital economy.
Amaana Capital, a US-based company, and Tricap Investments, a UAE-based company, jointly headed the round. Along with PNO Ventures, angel investors Omer Ismail, and Jahanzeb Sherwani committed to the round.
The company aims to accelerate its logistics services development by introducing fintech and technology solutions for its clients through investment. This move involves the creation of new business verticals.
Hassan Khan, the founder, and CEO of LogiTech startup Trax, said:
“We created Trax with a lot of dedication and passion while funding ourselves because we strongly believe in the model.”
With the help of this financing, we will be able to move more quickly toward our goal of using technology to address issues facing the e-commerce and logistics sectors.
“Our company is evolving from logistics to addressing connectivity issues and financial inclusion in Pakistan. Additionally, the new partners will assist in opening up new markets and launching new verticals.”
He added that the partnership would enable the company to expand regionally and globally while leveraging its expertise. This would help Trax establish itself as a reputable brand that Pakistanis could take pride in.
Trax, one of the logistics companies in Pakistan’s e-commerce market, was introduced in the middle of 2017.
With access to 95% of the country’s people and more than 100 warehouses, hubs, and retail locations across the country, Trax has developed the third-largest delivery network in Pakistan.
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The business also has a fast-transit line haul-by-road method for e-commerce, which shortens lead times and lowers costs for customers.
Trax collaborates with over 7,000 online retailers in addition to clients in the banking, pharmaceuticals, FMCG, and manufacturing sectors. It has a workforce of almost 2,000 individuals.
“We are impressed with Trax’s innovative approach to logistics and their commitment to providing high-quality solutions to their customers,” said Suleman Soorani, Partner at Tricap Investments. Trax has a top-notch executive team and a history of achieving scale.
Amaana Capital’s managing partner, Aziz Hashim said:
“We are sure that Trax’s strong management team and our investment will allow the business to keep growing and establish itself as the top logistics provider in Pakistan.”
Co-founder Asad Abdulla and chairman Saqib Hamdani also thanked the investors for their assistance.
After the announcement, Hassan explained that the founders intended to establish a strong company before approaching investors for accelerated development.
He claimed that they were busy setting up the foundation for their company, but a few VC funds showed interest in investing at a very high valuation in 2021.
According to him, the current state of the world economy and the political turmoil in Pakistan has caused investors to reassess their plans for investing their money in Pakistan. He claimed that Trax’s success and journey were remarkable, which ultimately led to their decision to proceed.
