E-commerce logistics startup Rider has expressed interest in acquiring BlueEx (PSX: GEMUNSL), Reuters reported.
Rider, a rapidly growing e-commerce logistics startup, has shown serious interest in acquiring BlueEx, listed as GEMUNSL on the Pakistan Stock Exchange (PSX). In a report from Reuters, Rider’s CEO, Salman Allana, shared details of the potential deal, clarifying that the acquisition would focus solely on BlueEx’s e-commerce logistics business rather than the entire Universal Network System Limited.
This would mark the first major acquisition of a company listed on the Growth Enterprise Market (GEM) board of PSX. While financial specifics of the deal have yet to be disclosed, the acquisition is expected to elevate Rider to the third-largest player in Pakistan’s e-commerce logistics sector. Allana highlighted that this achievement would place Rider ahead of legacy competitors who dominate the market through extensive nationwide services. Post-acquisition, Rider would be equipped to handle one million monthly orders for over 3,000 merchants across 700 delivery locations.
Rider has made significant strides in the startup ecosystem, securing $5.4 million in funding to date. Notable investors include YCombinator, Global Founders Capital, Flexport Fund, i2i Ventures, Fatima Gobi Ventures, Soma Capital, Rebel Fund, and TPL e-Ventures. This acquisition could further strengthen Rider’s position in Pakistan’s logistics industry.
The news has been a much-needed boost for Pakistan’s struggling startup ecosystem. Since early 2023, the local startup scene has faced severe challenges, exacerbated by a global funding crunch, as well as Pakistan’s economic and political instability. Venture capital funding in the country saw a dramatic 87.7% decline year-on-year in the third quarter of 2023, falling to just $6.8 million from $55 million during the same period in 2022.
The acquisition could represent a glimmer of hope, providing momentum in the domestic market, and potentially reshaping the logistics landscape in Pakistan.
