According to the founders of Zaraye, obtaining raw materials is a big pain point for Pakistani producers, who must make repeated phone calls to suppliers while waiting for quotes. The firm, which runs a platform that links manufacturers with suppliers directly, said today that Tiger Global and Zayn Capital had invested $2.1 million in pre-seed capital.
Tiger Global has made a pre-seed investment in a Pakistani firm for the first time. +92 Ventures, Alan Rutledge, Jack Rizvi, and current and former Careem workers are among the other investors.
Taha Iqbal Teli, Hashair Junair Ahmedani, and Ahshan Ali Khan, who went to school together, launched the company in late 2021.
In addition to raw materials, Zaraye provides working capital to manufacturing companies. With over 300 partners and suppliers in around 20 cities, it currently services the textile and construction industries.
While Ahmedani’s family engaged in traditional manufacturing, Teli and Khan worked together at Careem, Swvl, and other startups. “For decades, Pakistan’s manufacturing sector has operated with very minor improvements, with WhatsApp being the only notable change in how procedures have evolved. “That is something Zaraye hopes to fix,” Khan stated.
Cotton yarn is one of the platform’s materials, according to CEO Khan, who told TechCrunch that it is the single most important raw material used to make end-use fabric in the textile business.
Zaraye produces cement, sand, gravel, and crushed stone to the construction sector. Smaller manufacturers with annualized revenue ranging from $250,000 to $2 million USD are the focus of the company.
Manufacturers typically engage with middlemen or directly with suppliers and wait for them to provide quotes. Zaraye, on the other hand, allows producers more control over their requirements by letting them to submit them and wait for quotes from suppliers.
This means that providers can view consolidated demand from Zaraye’s buyer network.
According to data compiled by Zaraye from the Pakistan Credit Rating Agency, Pakistan’s industrial manufacturing sector contributes 20% of the country’s GDP and $35 billion in raw materials annually, with raw materials accounting for 60% to 65% of total costs for manufacturers dealing with small net margins.
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