Pakistan's manufacturers need to have multiple phone calls with suppliers while waiting for rates, which is a major pain point. The startup, which runs a platform that connects manufacturers directly with suppliers, announced today it has raised $2.1 million in pre-seed funding. Tiger Global made a pre-seed investment in a Pakistan startup. Current and former employees of Careem are some of the investors.
The startup was founded by a group of friends who went to school together. In addition to raw materials, Zaraye provides manufacturing businesses with working capital. More than 300 partners and suppliers are present in about 20 cities.
The manufacturing sector in Pakistan has been operating with very marginal innovations since decades. Khan said that Zaraye intends to change that.
The app is called Zaraye.
Cotton yarn is the biggest raw material used in the textile industry and is one of the materials on the platform. For the construction industry, Zaraye provides cement, sand, gravel and crushed stone. The company is focused on smaller manufacturers with revenue between $250,000 and $2 million.
Typically, manufacturers connect with suppliers and wait for them to give rates. It is possible for manufacturers to post their requirements and wait for quotes from suppliers with the help of Zaraye. This means that suppliers can see demand from the network of buyers.
Pakistan's industrial manufacturing sector contributes 20% of the country's economy with $35 billion of raw material annually, with raw material accounting for over half of total costs for manufacturers.
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