Jugnu, a B2B eCommerce startup located in Pakistan, has raised $22.5 million in a Series A investment led by Sary, a B2B marketplace focused on the MENAP markets.
Jugnu will use the strategic investment to accelerate the development of its B2B eCommerce ecosystem in Pakistan and enhance the retail supply chain, thereby enhancing the livelihoods of Pakistan’s 1 million-plus SMEs.
The startup intends to address these issues by using its software to connect retailers and small businesses with manufacturers directly.
Jugnu has onboarded over 30,000 Kiryana stores across Lahore, Rawalpindi, and Islamabad since its inception, and it is currently growing into other cities. It has also begun offering kiryana owners purchase now, pay later services.
Sary has also formed a relationship with Jugnu in addition to the investment.
“Over the last 18 months, Jugnu has concentrated on building strong capabilities and moats in key areas, using our product-market fit to grow rapidly.” This round of funding will allow us to grow our staff, improve our technology platform, enhance our product offerings, and expand our regional reach,” stated Sharoon Saleem, Jugnu’s Co-Founder and CEO.
Over 1 million kiryana retailers in Pakistan do not have easy access to inventory. Over two-thirds of retail businesses are never served directly by a centralized delivery system.
Jugnu was formed in 2019 with the sole purpose of assisting small business owners in realizing their maximum earning potential by making business simple. Jugnu has been able to accelerate its growth by ongoing innovation, immediately covering an effective customer base of over 30,000 Kiryanas spanning Lahore, Rawalpindi, and Islamabad, with plans to expand to other major cities.
Jugnu has set itself apart by focusing on becoming a one-stop-shop for Kiryanas with a diverse product offering via its app, which connects producers with Kiryanas directly. BNPL has also been added to the startup’s product offering for Kiryanas. The service has been well received, and it will be expanded shortly.
“In a relatively short amount of time, Jugnu is swiftly positioning itself as the platform of choice for kiryanas across Pakistan’s cities, displaying great momentum amongst its consumers,” Mohammed AlDossary, Co-Founder and CEO of Sary, said of the investment. I look forward to working closely with Jugnu’s leadership to unleash the possibilities of local trade, bridging efficiency gaps in MENAP and beyond, as they continue to recognize the market opportunity Pakistan presents.”
Sary, which was founded in 2018, has effectively consolidated its market-leading position and is expected to grow fast in Saudi Arabia by 2021. The startup is positioned to become the gateway to enable frictionless commerce between producers and enterprises in the Middle East, North Africa, and Pakistan, following its acquisition of Morrawid, an Egyptian B2B food, and grocery marketplace, in March (MENAP).
The strategic investment and cooperation with Sary pave the path for MENAP B2B consolidation, allowing both companies to exploit various expertise and talent transfers across the region.
“Our new collaboration with Sary will be a big boost for Jugnu,” Sharoon Saleem, Jugnu’s Co-Founder and CEO, said of the partnership. With a rapidly growing client base in our existing operating locations, Sary will enable us to speed the growth of our platform to connect manufacturers and businesses, ensuring SMEs in Pakistan have access to the best, most competitively priced items at a single tap.”
“Both Sary and Jugnu stand to benefit from a MENAP-wide knowledge and talent network,” he added. “Employee exchanges will bring our teams closer together, leverage complementary expertise, and build an interdisciplinary skillset needed to create a frictionless B2B eCommerce gateway across the region.”