Karachi 24, March, 2022: Pakistan-based Jugnu, a B2B ecommerce firm, has raised US$22.5 million in a series A round led by Sary, a B2B marketplace that focuses on the Middle East, North Africa, and Pakistan (MENAP) markets.
Sarmayacar and Systems Limited also participated in the round. Jugnu said that more than one million kiryana (mom and pop) stores in Pakistan lack access to convenient inventory procurement, and that over two-thirds of retail stores don’t get serviced directly by any organized distribution channel.
A L S O || R E A D
TPL Properties subsidiary successfully secured investment commitment of PKR 18.35 billion: PSX
The startup aims to resolve these challenges by connecting retail stores and SMEs directly to manufacturers through its app. Since its establishment, Jugnu has onboarded more than 30,000 kiryana stores across Lahore, Rawalpindi, and Islamabad, and it is currently expanding into other cities. It has also started offering buy now, pay later services for kiryana owners.
Jugnu was founded in 2019 by Sharoon Saleem, Yasir Memon, Syed Khurram Haider, and Ahsan Muhammad Khan. In addition to the investment, Sary has also entered into a partnership with Jugnu.
“The strategic investment and alliance with Sary paves way for consolidation in the B2B space in MENAP, providing both companies with the ability to leverage diverse expertise and talent transfers across the region,” the companies said in a joint statement.
Founded in 2018, Sary has successfully consolidated its market-leading position, growing rapidly in Saudi Arabia in 2021. Following its acquisition of the Egyptian B2B food and grocery marketplace, Morrawid in March, the startup is poised to become the gateway to enable frictionless commerce between producers and businesses in the Middle East, North Africa, and Pakistan (MENAP).
The strategic investment and alliance with Sary paves way for consolidation in the B2B space in MENAP, providing both companies with the ability to leverage diverse expertise and talent transfers across the region.
Speaking about the alliance with Sary, Sharoon Saleem, Jugnu’s Co-Founder and CEO, added, “Our new alliance with Sary will be a great boost for Jugnu. We’ve established a foothold in our existing operating cities with a rapidly growing customer base, and Sary will help us accelerate the development of our platform to connect producers and businesses, thereby ensuring SMEs in Pakistan have access to the best, most competitively priced goods at a single tap.”
“Both Sary and Jugnu stand to gain from a MENAP-wide knowledge and talent network, by which 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,” he added.
