The kiryana owner has a point of sale device.
The number of global retailers, department stores and supermarkets in Pakistan is increasing, which is good for consumers, but bad for small general stores. According to a report by the State Bank of Pakistan, the growth of general stores will slow down in urban centers as large retail outlets expand their networks.
Many kiryanas still use pen-and-paper systems. They want to provide micro-loans as well as helping them to digitize their operations. The company announced today that it has raised a pre-seed funding round led by the BitRate Fund with participation from Antler and Century Oak Capital.
The goal is to cover 13 cities by the end of 2024, with the funding used for product development, hiring and expansion. According to the CEO of the startup, there are more than one million grocery retailers in Pakistan and it is targeting 300,000 of them.
Small retailers can compete against larger ones with the help of point-of-sale devices and an end-to-end operations platform provided by Snapp Retail. They can use the platform to accept digital and card payments.
Moazzam Ali Khan, Ahsan Aziz, and Moiz Ali were involved in the creation of Snapp Retail. Resource linked was the first startup that the team started. They worked at consumer giants like L'oreal.
The team's background in retail led them to launch snappretail, since they saw that many kiryanas don't have bank accounts
It makes these store owners miss out on a big opportunity to use technology to gain insights out of sales data and create forecasts, improve financial management, manage inventory better and the list goes on and on.
Customers are charged a monthly retail fee by the company. Retail sales data is sold to large consumer goods companies. As the company signs up more retailers, it will launch more monetization channels through partnerships for products such as working capital loans and B2B aggregation.
Bazaar, a startup that is digitizing retail in Pakistan, has raised $70 million. Bazaar is an app-based B2B platform. A hardware hosted micro- enterprise system is being deployed in the shop to help the retailer digitize their core store operations. Square is similar to the grocery retail segment in the US, but more similar to India's Reliancemart.
Being a proven concept globally, there is no doubt that Snapp Retail has the right approach to solve the essential problem of the retailer. The founding team has the experience and maturity to hit the right balance between growth and burn.
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