Daranz, an Alibaba-owned Company, is Preparing to take on Amazon

Daranz, an Alibaba-owned company, is preparing to take on Amazon
Daranz, an Alibaba-owned company, is preparing to take on Amazon/courtesy of Facebook

Daraz, Pakistan’s largest e-commerce retail platform, aims to host 300,000 small to medium enterprises (SMEs) in the next two years, according to its CEO, as the company seeks to strengthen its position in the domestic market in the face of potential competition from global giant Amazon.

E-commerce growth in the 220 million-strong country has yet to fully take off, unlike in neighboring India, where the market is dominated by retail behemoths like Amazon and Walmart, as well as large local platforms run by India’s Reliance and Tata groups.

Daraz, a Pakistani startup that was acquired by Chinese giant Alibaba in 2018, has 100,000 SMEs on its platform.

“Within the next two years, we want to have 300,000 active and educated SMEs selling on our platform, which will essentially create a million jobs,” CEO Bjarke Mikkelsen told Reuters in an interview on Wednesday.

Pakistan’s rapidly growing middle class, over 60% youth population, and over 100 million broadband subscribers make it a lucrative market for e-commerce platforms.

Amazon announced earlier this year that Pakistani entrepreneurs will be able to sell their products on its platform.

Mikkelsen met with Prime Minister Imran Khan and his finance and investment teams before the interview to discuss coordination on free zones where tech companies would receive special incentives to thrive, as well as an e-commerce university that Khan said Pakistan would open.

Daraz employs 10,000 people in four other South Asian countries: Sri Lanka, Bangladesh, Nepal, and Myanmar, and has access to 500 million customers. Over the last two years, it has invested $100 million in Pakistan and Bangladesh, according to Mikkelsen.

He said the company is aiming for nearly $1 billion in sales this year through its platform, which has seen 100 percent year-over-year order growth in the last four years.

According to data from the commerce ministry, the e-commerce sector in Pakistan grew by over 35% in the first quarter of2021, to 96 billion Pakistani rupees ($548.89 million), up from 71 billion in the same period last year.

Pakistan accounted for 35 million of the 70 million users who visited the Daraz website last month. According to Mikkelsen, more people in Pakistan are now willing to use digital services.

He went on to say that e-commerce accounts for only 2% of the retail market in the South Asian countries where Daraz operates, but that it could be scaled up 10 to 20 times.

MORE:

Have a tip we should know? tips@rhd.news

Most Read

  1. ARTS
    With a Vengeance and no Apologies, Art Basel Miami Beach Has Returned
    2 months ago
  2. Food
    Is Faux Turkey Finally Vegan-Approved for Thanksgiving?
    2 months ago
  3. News
    Pandora Papers Financial Leak Shows Us the Secrets of the World’s Rich and Powerful
    4 months ago
  4. Health
    US Supreme Court Rejects J & J TALC Cancer Case Appeal
    8 months ago
  5. Lifestyle
    9 Habits that Drain your Daily Focus and How to Avoid Them
    8 months ago
  6. BUSINESS
    Women’s Demand for Shapewear – the big Trends
    9 months ago
  7. BUSINESS
    Valentino Launches its Cosmetics Line
    9 months ago
  8. Business
    McDonald’s Sales Increase Amid COVID Restrictions
    9 months ago
  9. Health
    US Promises to Share 60 million Doses of AstraZeneca Vaccines
    9 months ago
  10. coronavirus
    UK Offers Aid Amid Surging COVID-19 Cases in India
    9 months ago
  11. Entertainment
    Nomadland Director Chloé Zhao, Wins the Best Director in 2021 Oscar
    9 months ago
  12. Crptocurrency
    In China, a government-backed services network is constructing NFTs infrastructure
    3 days ago
  13. Crptocurrency
    According to analysts, North Korea stole a record $400 million in cryptocurrencies
    3 days ago
  14. Economy
    US Inflation Rate Rises to Four-Decade High of 7% in December
    5 days ago
  15. BUSINESS
    The Cash App now supports the Bitcoin Lightning Network
    5 days ago
  16. Americas
    US President, Joe Biden Looks to Rally the Party on Voting Rights
    6 days ago
  17. BUSINESS
    The global economy faces a grim outlook, World Bank Warns
    6 days ago
  18. Europe
    WHO: Within weeks, half of Europe will be infected with Omicron
    6 days ago

Follow @rushhourdaily: