Tazah gets $2 million in pre-seed financing to help Pakistan's agricultural industry get off to a faster start
An agricultural-tech company based in Lahore recently disclosed a pre-seed round headed by Global Founders Capital and Zayn Capital garnered almost $2 million. Participants in this round included Ratio Ventures and Walled City Co as well as angel investors like senior executives from ride-hailing platforms Careem and Swvl, as well as i2i and Suya venture capital firms. Other investors included Globivest, Afropreneur Syndicate, +92 and Suya venture capital firms as well as Musha Investments.
Pakistan's agricultural industry now contributes the most to the country's economy. Because of these broken supply networks, consumers are paying more, more food being wasted, and farmers are losing money. To that end, Tazah has set up shop here in order to keep an eye on things.
According to Abrar Bajwa and Mohsin Zaka, the startup's founders recognised a fresh chance to alter the agricultural sector's ecology in light of the current problems. We are from central Punjab, and agriculture is something that every family there is involved in," explains Bajwa. As a result of the way the cards are set against small-scale farmers, they don't have much opportunity for upward social mobility.
Small-to-medium-sized merchants have purchased inventory via the Tazah platform, and they now provide five major types of goods, namely: garlic, ginger, tomatoes, potatoes, and onions.
While expanding to veggies and fruits, the start-up wants to make sure that the supply is plentiful and of high quality.
Additionally, the business inspects the products for quality, eliminating those that are rotting and classifying them according to customer type.
That's why we've spent months in wholesale marketplaces interviewing hundreds of merchants and learned that standardisation of products is required in Pakistan," Bajwa said in response to this question. "Retailers will know precisely what's in the bag," we reach the bottom of operations.
There may be many bad potatoes in a single bag of potatoes, therefore you don't want to purchase from farmers and then deliver to merchants, said Zaka. That's hardly a significant contribution."
According to startup owners, fragmented supply chains lead to a 40 percent loss in product due to damage that occurs each time it is unloaded, stored, and then reloaded into a truck. This is something Tazah wants to change by partnering with third-party warehouse and transportation firms rather than buying and operating their own facilities and building a shorter, more efficient logistics infrastructure.
Aside from using warehouses, the company utilises appropriate but tiny fulfilment facilities to meet its early morning delivery requirements. Due to over-harvesting, Tazah is developing a data and analytics platform that helps farmers plan crops to avoid overstock in the markets they service, with the goal of eliminating this problem.
While Tazah is now concentrating on its supply chain work, the company intends to provide farmers with finance alternatives in the future so that they can better understand how much money they need and how they can pay it back.
According to Zaka, "Financing is something we are actively looking at since it's a future play for us and we work with farmers to know what they are doing and how they are really obtaining financing." for us,
"Agriculture has been a largely neglected area in Pakistan from a technological viewpoint, and I believe that as more individuals come into this, they're going to assist one other instead of competing," Zaka said of Pakistan's agricultural sector. In our opinion, bringing in additional individuals will be beneficial since it will speed up problem-solving in this very complex area. Due to the sheer size of the problem, even a tiny dent would contribute to social uplift for hundreds or thousands of Pakistani farmers and increase the supply of fresh product. This will lead to less food being sampled and lower food price inflation."