Mobility company BusCaro has successfully received $1.5 million in a pre-seed investment round, with participation from Wahed Ventures and angel investors.
Mobility company BusCaro in Pakistan has successfully received $1.5 million in a pre-seed investment round headed by Orbit Startups, with participation from Wahed Ventures and angel investors. This is a ground-breaking step that will revolutionize Pakistan’s transport environment.
BusCaro, founded in October 2022 by CEO Maha Shahzad, aims to address the challenges posed by Pakistan’s fragmented public transport system and the often prohibitive costs associated with taxis, rideshares, and rickshaws. The startup, currently operational in Karachi, Lahore, and Islamabad, seeks to collaborate with the country’s 40,000 minivan and minibus drivers, connecting them with passengers through partnerships with employers and schools.
The unique approach of BusCaro aims to create a win-win situation for both drivers and passengers. By optimizing the occupancy of buses, drivers can earn more than they would from sporadic individual passengers.
Simultaneously, passengers benefit from significantly lower fares compared to traditional rideshare vehicles and taxis. A typical journey with BusCaro costs around Rs150, whereas the same trip could incur costs of Rs800 in a rideshare vehicle or Rs1,400 in a taxi.
BusCaro CEO Maha Shahzad highlighted the positive impact on safety, emphasizing that filling the bus enhances the driver’s income while ensuring passengers reach their destinations securely. The startup has garnered attention and support, recently announcing the successful closure of its pre-seed funding round on LinkedIn.
“With 20,000 bookings a day, BusCaro is on target to break into profitability during the first quarter of 2024,” Shahzad shared, emphasizing the company’s growth potential. The three cities where BusCaro currently operates boast a target market of up to eight million passengers.
William Bao Bean, managing general partner at Orbit Startups, expressed his enthusiasm for supporting BusCaro, citing the startup’s sense of purpose and its potential to address challenges related to diversity and inclusion. Bean emphasized that BusCaro’s model enables women and men to access safe, affordable, and efficient shared transport options, fostering opportunities and contributing to the overall economy.
Orbit Startups‘ investment will empower BusCaro to further enhance its technology stack. Shahzad envisions incorporating new functionalities for both passengers and partners as the business expands. The startup has already set its sights on international expansion, marking a significant step toward reshaping public transportation not only in Pakistan but potentially in other regions.
BusCaro’s success in securing pre-seed funding reflects a growing recognition of the importance of accessible and safe transportation solutions. As the startup continues to innovate and expand, it has the potential to not only revolutionize the transportation sector in Pakistan but also serve as a model for addressing similar challenges globally.