October was another ZERO deals month—second this year. Let's not get too hung up on that. It is what it is.
But let’s zoom in on Retailo and its emergency round.
Last year, Retailo raised $36 million in Series A funding. Two weeks ago, it announced that it had raised $1.5 million from Dtonic Corporation. Not Dentonic, Dtonic.
Why would a company that raised Series A funding of $36 million need an emergency funding of $1.5 million? That seems absurd.
But then I remembered receiving a copy of a memo (from someone) in July entitled 'EXCLUSIVE & Time-Sensitive Investment Opportunity.'
This memo was from Retailo sent out to folks it thought might want to invest.
I can’t share the memo publicly because it contains private information. But I can tell you why Retailo had to raise an emergency round, which was addressed in the memo.
A $15 million investment from a Series A investor got delayed.
$1.5 million is needed to keep operations running smoothly.
Out of which, $1 million is needed to get Pakistan's business to profitability.
Emergency fundraise has the blessing of the board of directors.
With that context, the emergency funding doesn't seem so left-field.
A word for the wise here. Maybe two.
Please don’t raise money from unsophisticated investors. When shit hits the fan, they are the first ones to run. And don’t raise more money than you need to, especially from unsophisticated investors.
In my tracker, I have documented Retailo’s round as a Series A extension - too small for a bridge.
🎒 Resource
Founder Pakistan has launched a job board.
Macro Pakistani published an infographic (PNG and PDF) of my post ‘The Road to Venture Capital in Pakistan: What 142 Founders Reveal.’
📰 Learn
Freelancers in Pakistan can now get paid using Apple Pay with SadaPay. IT companies can keep 50% of their revenue in USD. Lahore-based Sai Venture Capital is raising a $10 million VC fund. Continuing crackdown on illegal loan apps. Rider is looking to acquire BlueEx. Esports company Gamer Pakistan goes public on NASDAQ and raises $6.8 million. PSX listed Symmetry Group partners with U.S.-based Hummingbird. Projected IT export earnings to reach $3 billion in FY24.
🧠 Think
Pakistan’s leap into the future with SIFC. Why is BlueEx selling its e-commerce business to Rider? Exodus, regulatory makeover and early traction: what’s happening with EMIs.
🎙️ Listen
Q3 2023 Pakistan startup funding update with Mutaher Khan and conversation with Muna Khan on Pakistan's changing digital media landscape.
📺 Watch
Conversation with Arif Iqbal, co-founder of LAAM, Muneeb Maayr, Founder of Bykea, and Saif Ali, former general manager at Dastgyr. Minister of IT Umar Saif discusses the Pakistan Startup Fund. Q3 2023 Pakistan startup funding update with Mutaher Khan.
Until next month, ✌️