InDrive, the global ride-hailing giant, has made a strategic $10 million investment in Krave Mart, a rapidly growing Pakistani grocery delivery startup, two sources confirmed.
This move underscores InDrive’s growing focus on expanding its reach and identifying growth opportunities in emerging markets. The investment is part of InDrive’s broader venture capital strategy launched in 2023, with the company allocating $100 million to invest in startups in developing countries like Pakistan.
Founded in 2021, Krave Mart operates as an online grocery delivery platform, or quick commerce, offering fast and efficient services to urban households in Pakistan.
Speaking to Profit, Kassim Shroff, the founder and CEO of Krave Mart, said that since the investment, Krave Mart has been able to grow by three-times. “The company has been able to improve its delivery times which suffered during the investment crunch.”
Shroff emphasized that the company has also maintained slow cash burn, a crucial factor in ensuring long-term sustainability, while also enhancing its assortment of products and competitive pricing.
As the company looks ahead, it will likely continue to focus on its growing product portfolio, faster delivery times, and more competitive pricing to stay competitive in the evolving online grocery delivery market.
With this new funding, Krave Mart plans to expand its operations within Pakistan and potentially venture into other markets. The startup’s growth comes amid the challenging backdrop of Pakistan’s economic landscape, yet Krave Mart has managed to outperform many competitors, including Airlift, which shut down its operations in the country. Similarly, Cheetay also faced an unfateful end in quick commerce.
Today, Krave Mart competes with giants like Foodpanda, backed by Delivery Hero, in some urban centers, owing to its emphasis on private-label products and operational efficiency.
On the other hand, InDrive’s investment in Krave Mart is aligned with its long-term ambition to become a superapp. Andries Smit, the head of InDrive’s New Ventures unit, had earlier emphasized that the company’s investment approach is focused on identifying opportunities that align with this vision. “Our strategy is to become a super app, and we are optimistic that our partnership with Krave Mart will contribute significantly to that vision,” Smit stated.
As part of this strategy, Krave Mart would also be listed on the InDrive app, fueling the emergence of InDrive’s super app ecosystem in Pakistan.
InDrive, which has rapidly expanded to 46 countries, has built its success on allowing passengers and drivers to negotiate fares, making it the second-most downloaded ride-hailing app globally in 2024, according to data.ai. Its investment in Krave Mart follows an earlier partnership with micro-insurer MIC Global, reinforcing its commitment to exploring opportunities that align with its business model.
Additionally, InDrive’s venture arm has made a similar investment in Kazakhstani grocery delivery startup Ryadom, continuing to strengthen its footprint in emerging markets.
Note: This article follows up on a previous report published in December 2024, confirming that InDrive’s investment in Krave Mart amounts to $10 million.
