Delivery startup Krave Mart raised Pakistan’s third-largest funding round for the year, saying the proceeds will help it reach profitability next year.
The Karachi-based company raised the $6.25 million round over the past year, Chief Executive Officer Kassim Shroff said in an interview. Investors participating included Y Combinator, football manager and former player Keisuke Honda, JAM Fund, Rebel Fund, Decart Ventures as well as existing backers including Conjunction Capital and Zayn Capital.
Pakistan’s startup economy is experiencing a drought along with global technology companies after a couple of years of record fundraising. Funding dropped by about 90% in Pakistan in the third quarter of 2023, according to data compiled by tech website Data Darbar.
Krave Mart delivers thousands of orders a day, competing with Delivery Hero SE’s FoodPanda as online services gain steam in Pakistan. Airlift Technologies Pvt., which raised Pakistan’s largest round of $85 million only to go bust afterward, also operated in the same sector.
Shroff said Krave Mart has launched multiple private label products from bread to handwash to boost its profit margins. Its earnings before some costs as a percentage of sales are topping those enjoyed by some Indian grocery startups with unicorn valuations, he said.
