KARACHI: Bykea, a Pakistan-based on-demand transport & logistics platform, announced that it has raised a Series B funding round led by Prosus Ventures (formerly Naspers Ventures).
The round, which brought the total funds raised to US$22 million, saw participation from existing investors Middle East Venture Partners and Sarmayacar.
As the pioneer and leader in motorbike taxi and on-demand delivery in Pakistan, Bykea plans to invest significantly in its platform strategy leveraging its peak active driver fleet of 30K+ in 2020 for cross utilization in e-commerce logistics, food and payment services in 2021.
The fresh capital will also be used to expand Bykea’s market reach in smaller cities where international players have struggled to grow their English-language platforms in a country where no more than 10% comprehend English.
“Bykea is one of the few internet businesses offering an interface in the Urdu language and we drive our competitive advantage from being highly localized. This approach has helped us become the preferred partner for part-time motorbike gig workers. Our brand is now widely used as a verb for bike taxi and 30- minute deliveries, and the fresh capital allows us to expand our network to solidify our leading position,” said Muneeb Maayr, Founder at Bykea.
The event was attended by Ambassador for Foreign Investment Mr. Ali J. Siddiqui. Ambassador Siddiqui congratulated Bykea for achieving the target they had set for themselves 3 years ago.
“Bringing partners like Naspers/Prosus ventures into Pakistan will draw attract many other relevant technology investors, bringing more capital into Pakistan,” stated Ambassador Siddiqui.
The three cities Bykea operates in, Karachi, Rawalpindi and Lahore, have a combined population of 30 million people. Public transportation is underserved in all three cities, but these urban centers drive the economy of the 5 th most populous country in the world. Motorbikes are the rails for distributors, couriers, ecommerce retailers and restaurants to move goods and collect receivables, almost entirely in cash in one of the least banked countries in the world. With 17 million two-wheelers in Pakistan; 4x the number of cars; Bykea offers millions of people the chance to earn an income by tapping into the tremendous opportunity in the country for both transport and hyperlocal commerce.
“Pakistan is primed to experience extremely strong growth in internet services over the next decade, with a rapidly increasing middle class. This growth provides immense opportunity for companies like Bykea that are transforming big societal needs like transportation, logistics and payments through a technology-enabled platform. Bykea has already seen impressive traction in the country and with our investment will be able to execute further on their vision to become Pakistan’s ‘Super-App’.” said Fahd Beg, Chief Investment Officer, Prosus.