E-Commerce platform PriceOye.pk has raised $7.9 million in seed funding, amongst the largest for an e-Commerce company at the seed round.
The funds will help consolidate the company’s positioning in the country’s electronics marketplace.
The investment was announced by PriceOye cofounder Adnan Shaffi on his LinkedIn page:
The startup was founded by brothers Adnan Shaffi and Adeel Shaffi in 2020.
With the Pakistani consumer electronics space seeing an estimated spend of $8.5 billion in 2020, the brothers sought to get a slice of that.
With a focus on establishing trust through a managed platform and a product recommendation engine, the brothers claimed to have had 500% revenue growth year over year through some two million customers.
“PriceOye’s managed marketplace not only gives access to authentic products at great prices but also helps consumers make better shopping decisions through its recommendations system,” said PriceOye CEO Adnan in a statement.
He added that the biggest problems with online shopping for consumer electronics in Pakistan was the presence of counterfeit products and price discrepancies which result in a fractured buying experience for a majority of Pakistani shoppers.
Commenting on its system, Adnan explained, “PriceOye was designed to bring transparency and convenience to the shopping experience and has the highest net promoter score, which measures customer experience and loyalty. As we plan for the next phase of our growth, we are excited to partner with new investors who have placed their trust in us.”
It intends to maintain this trend by adding more products and categories to the platform and growing its partner network.
Bouquet of investors
The Sharffi brothers managed to attract interest from a bevvy of global investors who are known for making shrewd choices when it comes to pulling out their checkbooks.
The round was led by US-based JAM Fund. Through it, PayPal and Palantir Technologies founder Peter Thiel made his first investment in Pakistan.
Other investors in the round include Beenext, an early investor in Indonesian e-commerce platform Tokopedia, DG Daiwa, Mantis VC, HOF Capital, Jet.com’s investor Palm Drive Capital, Atlas Ventures, Immad Akhud of Mercury Bank and Asif Keshodia of Souq also contributed in the seed funding round.
Past investors in PriceOye include Fatima Gobi Ventures, SOSV, and Artistic Ventures.
PriceOye, the competitor of Ali Baba owned-Daraz, claims to be the largest seller of smartphones in Pakistan with over 2% of entire Samsung sales being routed from their platform.