The new funding will allow the mobility, commerce, and payments startup to weather the startup investment downturn.
Bykea, Pakistan’s mobility, commerce, and payments startup, has announced the completion of a $10 million raise from existing investors, which will help the startup navigate a turbulent downturn in startup investments.
Prosus Ventures, MEVP, Tharros, and Pakistan’s Sarmayacar and Ithaca Capital are among Bykea’s existing investors.
Bykea previously raised a $13 million Series-B round in September 2021, following a $5.7 million Series-A round in April 2019, bringing the startup’s total raised to $28.7 million.
Initially intended to raise a significant funding round (think $50 million), the fundraising momentum stalled after the stock market crash in the United States caused investors to redirect investments to safer avenues.
According to news resource, Bykea has grown 5.7x since the pandemic and now has a customer base of 5 million in the mobility, commerce, and payments verticals.
The mobility vertical of the business includes ride hailing services, the commerce vertical includes deliveries, and the payments vertical includes cash collection services.
Despite its impressive growth, Bykea announced a $10 million investment from existing investors, as funds around the world seek better unit economics and a clear path to profitability while minimising risk.
“Investments into consumer facing startups is falling because it requires hefty amounts to educate the consumers about the service,” says Muneeb Maayr explaining the drop in global venture capital investments and the Bykea round. “In bearish markets, investors gravitate to investments which do not require such spends, for instance in B2B segments.” He added.
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