Pakistan-based mobility startup BusCaro has secured $1.5 million in financial commitments in a pre-seed funding round led by Orbit Startups.
The funding round also saw participation from Wahed Ventures and angel investors.
In a recent announcement on LinkedIn, BusCaro expressed gratitude to its exceptional team, partners, and investors for their unwavering support in closing this successful pre-seed funding round.
“Navigating the challenges and doubling down on the impact — BusCaro closes a successful pre-seed funding round,” the startup announced. “We thank our exceptional team, partners, and investors for their unwavering support and for propelling us to greater heights!”
BusCaro, established in October 2022 by CEO Maha Shahzad, is making significant strides in transforming Pakistan’s transportation landscape. Operating in Karachi, Lahore, and Islamabad, BusCaro aims to bridge the gap between the country’s ailing public transport system and the often expensive alternatives like taxis, rideshares, and rickshaws.
What makes the startup standout is the affordability it brings to commuters, offering a typical trip at around Rs150 rupees, a fraction of the cost compared to rideshare vehicles or cabs, which could be Rs800 and Rs1,400 rupees, respectively.
CEO Maha Shahzad highlighted the company’s commitment to addressing challenges and enhancing transport quality with a particular focus on passengers’ safety.
“When we fill the bus, the driver earns more than from driving the odd passenger, and the passenger gets a lower fare,” Maha Shahzad told Forbes. “Most importantly of all, the customer gets to their destination safely.”
BusCaro has strategically positioned itself by partnering with the nation’s 40,000 minivan and minibus drivers. The startup facilitates connections between drivers and potential passengers through collaborations with employers and schools.
With an impressive milestone of 20,000 daily bookings, BusCaro anticipates reaching profitability in the first quarter of 2024. Shahzad further aims to introduce new functionalities for both passengers and partners as part of the expansion strategy.
William Bao Bean, managing general partner at Orbit Startups, appreciated BusCaro’s purpose and growth potential, particularly highlighting its role in promoting diversity and inclusion by providing affordable and safe transportation options.
“Diversity and inclusion are tough to achieve when women have to spend north of 30 percent of their salary on getting to work in a safe and predictable way,” he said.
The startup, with operations in three major cities, eyes a target market of up to eight million passengers. Additionally, the company has set its sights on international growth, signaling a promising trajectory for BusCaro as it continues to reshape and revolutionize the mobility sector in Pakistan.