KARACHI: Three years ago, Muneeb Maayr had what would turn out to be a $5.7 million idea: to launch a technology app that could transform two of the biggest assets of lower and middle income Pakistanis — the smartphone and the motorcycle — into a source of income.
Bykea, an Urdu-language bike-hailing and logistics app, was thus born in December 2016. Less than three years after its launch, the company has bagged $5.7 million in a Series A funding round from Pakistan’s first venture capital fund Sarmayacar and institutional investors from South East Asia and the Middle East.
The funding round is the largest ever in Pakistani startup history and a sign of Bykea’s growing popularity in one of the world’s largest markets for motorcycles.
“Smartphones and motorcycles are often the only valuable assets of low income persons and we thought to convert them into income generating assets through engaging them with Bykea,” Maayr, 40, told Arab News in an exclusive interview.
Maayr is a pioneer in Pakistan’s e-commerce landscape. In 2012, he founded Daraz.pk, the country’s largest online marketplace and retailer, now acquired by Chinese e-commerce giant Alibaba. He was also Director of Operations for seven years at SNL Pakistan, now S&P Global, one of the largest IT exporters from Pakistan.
With Bykea, Maayr said, his aim was “to facilitate more and more people through easy public transportation in less time.”
“Now we will use the [$5.7 million] financing to expand our network, and further simplify the Urdu app for the common person, and make it easier to use for semi or illiterate people,” he said.
Bykea has to date been installed by 2 million users and employs a network of over 200,000 delivery partners, or motorbike drivers. Around 85 percent of the company’s operations — which include ride sharing and deliveries, couriers, bill payment services, wanted ads, classified ads and ticketing help — are run in Pakistan’s financial hub and largest city of Karachi.
The idea behind forming Bykea, Maayr said, was to tap into the largest segments of Pakistani society, lower and middle income citizens, who could not afford cars and were to a large extent not literate in English. Bykea’s Urdu-language app would do just that, enabling a crowdsourced network of motorbike owners to transport people and parcels, thereby supplementing their incomes while also delivering cost effective logistics solutions.
Pakistan, a nation of 208 million people, is the world’s fifth largest market for motorcycles after China, India, Indonesia and Vietnam. With 7,500 new motorcycles being sold every day, Pakistan is also among the world’s fastest growing two-wheeler markets, according to 2018 figures from the Bureau of Statistics.
“There are 3 million motorcycles registered in Karachi city alone while countrywide registrations stands at 30 million,” Mohammad Sabir Shaikh, chairman of the Association of Pakistan Motorcycle Assemblers (APMA), told Arab News.
“We are not even covering one percent of the total market share,” Maayr said.
Pakistani tech startups like Bykea have also gained from the country’s expanding Internet penetration and infrastructure. Pakistan’s mobile Internet users as a percentage of the population were recorded at 21 percent at the end of January 2019, as per a Global Digital Report released by We are Social and Hootsuite. According to the Pakistan Telecommunications Authority, the country’s tele-density is 75.8 percent or 159 million cellular subscribers, 66 million 3G/4G users and 68 million broadband users.
With literacy at around 60 percent and a majority of Pakistanis only marginally fluent in English, Maayr thought it would be best to launch an Urdu app. He says what makes his service unique from ride-hailing apps like Careem and Uber, which also offer motorbike rides, was precisely that the app was in a local language, making communication much easier between customers and drivers, as well as rendering the app more accessible to common Pakistanis in general.
E-commerce is a rapidly growing industry in Pakistan, with sales of local and international e-commerce merchants doubling to Rs40 billion in 2018 from Rs20.7 billion in 2017, according to central bank data which only covers payments made through digital channels and not cash-on-delivery, a popular method of payment in Pakistan. If non-digital modes of payment are taken into account, figures for total e-commerce activity in 2017 and 2018 may have touched Rs 51.8 billion and Rs 99.3 billion respectively, the State Bank of Pakistan said.
“Pakistan can experience an increase in its gross domestic product by a cumulative 7 percent (roughly $36 billion) and create around four million new jobs during 2016- 2025 via an increase in the use of digital financial services alone,” the central bank said in its annual report for fiscal year 2017-18.
Bykea’s funding announcement follows a series of customer launches, including a collaboration with the country’s leading telecom network Jazz, to connect customers with drivers using a simple dial in mobile number 0307-1234567. In addition, the Company has received grants from USAID’s Small & Medium Enterprises Development Authority to help create jobs in the hospitality sector and the Mahvash & Jehangir Siddiqui Foundation to provide short term lending to enable motorbike owner operators with income opportunities.
Going forward, Bykea intends to use funds from the new raise to continue to focus on increasing its driver network and providing new members income generating opportunities in the transport, delivery and e-commerce space.
“After regularly visiting Pakistan over the past 3 years, the tremendous potential of the country is obvious to me,” said Singapore-based Jonas Eichhorst, who will join the company’s board as part of the $5.7 million funding transaction. “Bykea and its team are in a great position to play a leading role not only in advancing the nascent startup sector but can also become a local champion within the overall economy.”
Smartphones and motorcycles make bike-sharing app a golden idea for Pakistan
Smartphones and motorcycles make bike-sharing app a golden idea for Pakistan
- Bykea bags $5.7 million Series A investment, largest in Pakistani startup history
- Founder Muneeb Maayr says key to success was creating Urdu app, targeting low and middle income Pakistanis
After primary schools, Pakistan’s Punjab closes high schools as smog crisis deepens
- Record air pollution has triggered hundreds of hospitalizations, school closures, lockdowns in Punjab this month
- On Tuesday, provincial capital Lahore, home to 13 million people, had worst air quality globally, according to IQAir
ISLAMABAD: The government of Punjab has closed all educational institutions in the province up to the higher secondary level from tomorrow, Wednesday, until the end of the week because of record-breaking smog that has already prompted the closure of primary schools and government offices and has sickened tens of thousands of people.
Record-high air pollution levels have triggered hundreds of hospitalizations, junior school closures and stay-at-home orders in several districts of Punjab, including the provincial capital of Lahore, which has been enveloped in a thick, toxic smog since last month.
On Tuesday, Lahore, home to 13 million people, had the worst air quality of any city in the world, according to live readings by IQAir, a Swiss air quality monitoring company.
“All the educational institutions […] up to higher secondary level shall remain closed and will shift to online mode with effect from Nov 13 within […] DG Khan, Bahawalpur, Sahiwal, Sargodha and Rawalpindi divisions […] till Nov 17,” the province’s Environmental Protection Agency (EPA) said in a notification issued on Tuesday, ordering schools to shift to “online mode.”
In Pakistan, the higher secondary level refers to upper secondary education, which includes grades 11 and 12. It is also known as intermediate education.
Speaking to reporters, Punjab Education Minister Rana Sikandar Hayat said the decision to close higher secondary institutes was taken “in light of the complaints received from the district.”
“This drastic decision had to be taken to protect children from the deadly effects,” he said. “There is a sense of educational loss, but the decision to close educational institutions is being taken out of compulsion.
Primary schools and government offices had already been closed until Nov. 17 in many districts of Punjab earlier this month, with school closures likely to affect the education of more than 20 million students, according to associations representing private and government schools.
Authorities in 18 districts of Punjab also closed all public parks, zoos and museums, historical places, and playgrounds for ten days last week.
On Friday, a court in Lahore ordered the government to shut all markets after 8pm. Authorities have already banned barbecuing food without filters and ordered wedding halls to close by 10pm.
On Monday, the UN children’s agency said the health of 11 million children in Punjab province was in danger because of air pollution
“Prior to these record-breaking levels of air pollution, about 12 percent of deaths in children under 5 in Pakistan were due to air pollution,” UNICEF’s representative in Pakistan, Abdullah Fadil, said.
“The impact of this year’s extraordinary smog will take time to assess, but we know that doubling and tripling the amount of pollution in the air will have devastating effects, particularly on children and pregnant women.”
Bus carrying wedding guests falls into river in northern Pakistan, killing 18
- Accident took place on Gilgit Baltistan region as bus was heading to Chakwal in Punjab
- So far only one woman had been found alive and was being treated at hospital, officials say
MANSEHRA, Pakistan: A bus carrying about two dozen wedding guests fell into the Indus River in northern Pakistan on Tuesday, killing at least 18 people, officials said.
It happened in the Gilgit Baltistan region as the bus was heading to Chakwal, a city in Punjab province, government spokesman Faizullah Farqan said.
He said a search for bodies continued, and so far only one woman had been found alive and was being treated at a hospital.
Police said it was unclear what caused the crash, and officers were yet to record the lone survivor’s statement.
Pakistani President Asif Ali Zardari offered condolences and asked rescuers to expedite efforts to find missing passengers.
Road accidents are common in Pakistan due to poor infrastructure and disregard for traffic laws and safety standards. In August, 36 people were killed and dozens of others were injured in two separate bus crashes.
Pakistan says developing nations need $6.8 trillion by 2030 to meet climate pledges
- PM Sharif calls on donor countries to give 0.7 percent of gross national income as development assistance, use existing climate funds
- Premier says debt cannot become “acceptable new normal” in climate financing, calls for focus on non-debt financing solutions
ISLAMABAD: Prime Minister Shehbaz Sharif said on Tuesday developing countries would need an estimated $6.8 trillion by 2030 to implement less than half of their current nationally determined contributions (NDCs), or national action plans for reducing emissions and adapting to climate impacts defined by the Paris Agreement.
Nearly 200 nations have gathered in Baku, Azerbaijan, for COP29 climate talks this week to thrash out the details of a deal known as the New Collective Quantified Goal, designed to deliver billions of dollars of climate finance to the regions that need it the most. But the United States, Europe and others say they will only commit to the fund if the list of countries contributing to it is widened to include the likes of China, South Korea and Singapore, and the resulting deadlock could block progress during the talks.
Meanwhile, COP29 follows a year of weather disasters that have emboldened developing countries in their demands for climate cash.
Pakistan is ranked the 5th most vulnerable country to climate change, according to the Global Climate Risk Index. In 2022, devastating floods killed over 1,700 people and affected over 33 million, with economic losses exceeding $30 billion. International donors pledged over $9 billion last January to aid Pakistan’s flood recovery but officials say little of the promised funds have been received so far.
“Developing countries will need an estimated $6.8 trillion by 2030 to implement less than half their current NDCs,” Sharif said in an address on the sidelines of the World Leaders’ Climate Action Summit.
“Donor countries should fulfill their commitment to provide 0.7 percent of their gross national income [as development assistance] and capitalize existing climate funds.”
One such commitment, the $100 billion Annual Climate Finance pledge established over a decade ago at COP15, is now reported by the Organization for Economic Co-operation and Development to have reached only $160 billion, Sharif said.
“Despite this number remaining a tiny proportion of the defined need, a significant part of this financing is dispersed in the form of loans, further enhancing the debt burden on developing nations and potentially pushing them toward mounting debt traps, I call them death traps,” Sharif added.
“Pakistan alongside many other developing countries calls for stronger, more equitable climate finance mechanisms. Debt cannot become the acceptable new normal in climate financing which is why we must resume focus on non-debt financing solutions, enabling countries to fund climate initiatives.”
Sharif also called on the United Nations Framework Convention on Climate Change to set up a committee to review NDCs “periodically.”
“We need to double adaptation financing from present level and loss and damage funds must be enhanced and directed toward resilient infrastructure and other pressing needs,” Sharif added.
Governments last year pledged $800 million toward a new ‘loss and damage’ fund to help poorer nations being hit by climate-fueled disasters. The fund, which has a director and a host nation, will now be deciding how the funds should be dispersed and calling for more contributions at COP29.
On Tuesday, the world’s top multilateral banks, including the World Bank, European Investment Bank and Asian Development Bank, pledged to ramp up climate finance to low and middle income countries to $120 billion a year by 2030 as part of efforts at COP29 to agree to an ambitious annual target.
Reaffirming a goal of capping global warming at 1.5 degrees Celsius above the pre-industrial average by 2050, the new figure is a more than 60 percent increase on what the group of 10 multilateral development banks (MDBs) had funneled to poorer nations last year, according to a statement released during the UN climate summit.
The new figure includes $42 billion to help adapt to the impacts of extreme weather, a 70 percent increase over the 2023 number.
Emerging fintech operator in Middle East, Pakistan to acquire FINCA Microfinance Bank
- FINCA operates in 108 cities in Pakistan, providing state-of-the-art deposit and payment solutions
- ABHI established global headquarters in Abu Dhabi in Jan. 2024, has expended to Dubai and Saudi Arabia
KARACHI: Abhi Private Limited, an emerging fintech operator in the Middle East and Pakistan, and leading tech conglomerate TPL Corp. Limited, are all set to jointly acquire FINCA Microfinance Bank Limited, a statement from Abhi said on Tuesday.
FINCA Pakistan, part of a global FINCA network, operates in 108 cities across Pakistan, providing state-of-the-art deposit and payment solutions, including micro-credit facilities aimed at improving livelihoods.
ABHI established its global headquarters in Abu Dhabi in January 2024 and has also expanded its business through partnerships in Dubai and Saudi Arabia.
“The strategic alliance between Abhi and TPL Corp. aims to reshape financial inclusion efforts across Pakistan by combining FINCA’s extensive microfinance network and expertise with Abhi’s innovative digital solutions and TPL Corp’s presence in retail, insurance and technology sectors,” Abhi said in a statement.
“By bringing together these complementary strengths, the partnership is set to diversify and expand access to financial products and services that cater to underserved communities, including rural populations, small businesses, and lower-income individuals.”
The acquisition will combine TPL’s diverse business portfolio and FINCA Pakistan’s established presence and deep knowledge of the market, with the combined entity being “well-positioned to introduce customer-focused solutions that can make a tangible difference in underserved regions.”
“At Abhi, we’ve always believed in creating accessible financial solutions for everyone,” said Omair Ansari, CEO & Co-founder of Abhi.
“By joining forces with TPL, we’re making a stride toward expanding our reach and delivering impactful financial products to millions of Pakistanis who have previously lacked access to essential services.”
Looking ahead, Abhi, TPL and FINCA plan to focus on delivering a new range of financial products “tailored to underserved communities, driving financial inclusion and contributing to the nation’s economic growth.”
“FINCA Pakistan delivered on its promise to develop a nationwide microfinance network that is creating economic opportunity throughout Pakistan, especially for women,” said Jeff Smith, chair of the FINCA Pakistan Board of Directors.
“Abhi and TPL share FINCA’s commitment to expanding access to financial services for small entrepreneurs. The infusion of new capital and more comprehensive digital services have the potential to significantly accelerate financial inclusion in Pakistan.”
Top leaders of Imran Khan’s party briefly arrested, released in Pakistan’s Rawalpindi
- Leader of the opposition in the national assembly and other PTI leaders had arrived at Adiala jail to meet Khan
- Ex-PM has been in jail since August last year and faces a slew of legal challenges he says are politically motivated
ISLAMABAD: Top aides of jailed former Prime Minister Imran Khan were briefly detained before being released in the Pakistani city of Rawalpindi as they arrived to meet their leader at a local prison, his party said on Tuesday, with police saying they were arrested for breaking a law against public gatherings.
Leader of the opposition in the National Assembly, Omar Ayub Khan, and several other leaders of the Pakistan Tehreek-e-Insaf (PTI), had arrived at Rawalpindi’s Adiala jail to meet Khan when they were arrested for what Punjab Police has described as violating Section 144 of the Pakistan Penal Code, a legal provision that empowers district administrations to prohibit the assembly of four or more people in an area for a limited period.
“PTI workers were detained for violating Section 144 but were released after being issued a warning,” Punjab Police Spokesperson Sajjadul Hassan told media.
The PTI says the leaders were detained to block them from meeting Khan who has been imprisoned since August last year and faces a slew of legal cases, from corruption to terrorism, which he says are politically motivated.
“PTI leadership has been set free, after being kept in custody till the time for scheduled meeting with Imran Khan was over,” the party said in a text message to reporters.
In a post on X, the PTI said the arrests showed the “blatant misuse of power” of the ruling coalition led by Prime Minister Shehbaz Sharif’s PML-N party, which it said was “aimed at silencing PTI leaders and anyone standing with Imran Khan.”
“This assault on political freedoms is a grave warning for all citizens. The nation must stand up for itself, get organized, and peacefully protest,” the PTI said. “This is not an issue of any one person or party; it is a matter of Pakistan’s survival and integrity.”
Since his ouster from the PM’s office in 2022 in a parliamentary no-trust vote, Khan has been embroiled in over 150 cases and has been sentenced in several, including to three years, 10 years, 14 years and seven years to be served concurrently under Pakistani law. Khan’s convictions were later overturned in appeals but he cannot be freed due to other, pending cases against him.
He has maintained his innocence and has argued that the cases are an attempt to sideline him politically by keeping him out of the public area. The government denies it is persecuting Khan or his party.
