SLGTrax, the new entity formed by the merger of Secure Logistics Group Limited (SLGL) and last mile delivery startup Trax Online last month, has successfully completed and deployed $4 million in a post merger funding round as it scales its fourth-party platform.
Last month, SLGTrax secured an NBFC license to introduce fintech offerings and establish itself as a strong challenger in the logistics industry. The company is further in the process of acquisition of Singapore-based fintech company Finova, currently experimenting with their lending and payments solution in Pakistan.
The merger is another major consolidation in the logistics industry which has seen one startup – Swyft Logistics – rooted out and the acquisition of CallCourier by PostEx.
Founded in 2017, Trax Online quickly made a name for itself as an agile, tech-enabled last-mile delivery service catering primarily to Pakistan’s growing eCommerce sector. Over the last several years, it expanded operations to include international shipping, warehousing, and retail networks to serve walk-in customers. In 2023, the company attracted $3.2 million in seed funding from TriCap Investments and Amaana Capital. Its clients include J., AlKaram, Baby Planet, Bagallery, Bank Alfalah, Generation and JS Bank among prominent ones.
Secure Logistics Group (SLG) Limited, on the other hand, emerged from a legacy of logistics and security operations in Pakistan. Recently restructured and listed on the PSX in 2024, SLGL has developed a network that spans over 1,600 cities and includes more than 300 commercial vehicles. Through its Securlog brand the company caters to the mid and long haul brands while also offering static and mobile security services via FIST Security and Sky Guards.
It further distinguishes itself through its LogiServe platform, which provides asset tracking and fleet management solutions. SLGL’s credentials are underscored by its A+ credit rating from PACRA and partnerships with global players like Maersk.
This newly formed logistics company now combines extensive national infrastructure with cutting-edge technology, offering services that span long-haul freight, last-mile delivery, warehousing, security, and real-time asset tracking, completing the 4PL loop, giving complete over supply chain to SLGTrax.
What led to the merger?
Over the last 11 years, Trax Online became one of the most visible names in Pakistan’s eCommerce delivery boom, synonymous with service quality and a very good corporate culture. Starting as a small startup, it grew into a company touching Rs10 billion in annual revenue at its peak, Hassan Khan, the co-founder of Trax said.
By 2024, Trax came under pressure due to the overall economic downturn and the funding drydown and looked for opportunities to consolidate. It completed the merger with Secure Logistics Group which saw strong synergies with Trax Online especially on the technology side of Trax’s business.
Group CEO Gulraiz Khan believes that the future of logistics is technology-based and Trax had strong technology. “What we were doing was static legacy industrial logistics. When you merge Trax, we are going into technology based logistics. One of the segments that we want to increase is warehousing and last mile logistics that Trax used to do.”
The legal process was by a Scheme of Amalgamation following completion of which Trax Online became a 100% subsidiary of SLG. As part of the merger structure, Trax Global holds roughly 28% of SLGTrax.
The total shares of the publicly listed SLGTrax are 417 million. Assuming 28% shareholding of Trax in SLG, around 116.7 million shares form Trax’s shareholding. At the recent share price of Rs22, Trax’s implied valuation comes to Rs2.5 billion rupees or almost $9 million.
As part of the merger strategy, SLGTrax also secured a separate round of funding, raising and deploying $4 million to drive technology growth, regional expansion and enhancing service offerings. This capital raise stands apart from the previous funding obtained by Trax in 2023 and is specifically tied to scaling the newly combined business.
The shareholder base reflects the global aspirations of the company, featuring prominent international institutional investors such as the Saudi Bugshan Group, Karandaaz Pakistan (a development finance initiative supported by the UK’s DFID and the Bill & Melinda Gates Foundation), and Tricap Investments, a Dubai-based firm backed by Middle Eastern investors. The governance and compliance structure of the new entity is significantly bolstered by these shareholders, alongside its publicly listed status.
The merger is projected to result in annual savings of approximately Rs600 million for the combined entity.
The big sponsors on its roster including the Saudi Arabia-based Bugshan family give it an edge over others. The Bugshan family has a vast business empire encompassing manufacturing, logistics, distribution and power. If SLG and by extension Trax plan to enter the Middle East market, they will be able to establish themselves with ease because of the backing of such a big group, unlike a solo Pakistani logistics startup whose Middle Eastern could prove to be a shot in the dark.
What is 4PL about?
Trax is now legally integrated into Secure Logistics Group that has been piecing together a multi-vertical logistics platform. A multi-vertical platform has distinct businesses catering to different industries all combined into a single platform.
The strategy is clear. SLG has been building across verticals: long-haul trucking, fleet management, courier, warehousing, IT solutions, and even embedded security services. By bringing Trax into the fold, the group adds a strong eCommerce courier capability to that stack.
This integration is not cosmetic of course. SLG wanted more integration, dedicated vendors, owned fleet, in-house operations, and embedded security. In Pakistan’s fragmented logistics landscape, each handoff between trucking, warehousing, last-mile, and cash reconciliation is a potential failure point. SLG’s bet is that by owning the entire stack, it can reduce leaks, delays, and fraud, while offering merchants tighter control of their supply chains.
The stakes are enormous. Pakistan’s eCommerce economy is valued between $5-8 billion in 2025, with growth projected at a double-digit CAGR through 2027. But cash on delivery (COD) still dominates, with roughly 90% of online purchases paid at the doorstep. That means couriers are not just delivery companies, they are payments companies on wheels. Every failed delivery, delayed settlement, or incident of rider misconduct directly hits merchants’ cash flow and consumer trust.
SLGTrax now comes with a pitch of operational reliability because of their 4PL model and abundant cash. This will result in fewer failed deliveries, tighter cash cycles, and a better doorstep experience.
How exactly? The concept of fourth-party Logistics, or 4PL, goes beyond traditional third-party logistics (3PL). Under the 4PL model, a company provides complete supply chain management. Under this model, Secure Logistics doesn’t merely handle warehousing and transportation, it integrates strategy, planning, technology, and vendor management across the entire supply chain because it controls almost every part of the supply chain, all in-house.
This level of integration enables complete real-time visibility, operational efficiency, and scalability that are difficult to achieve with fragmented service providers. This includes long-and medium-haul delivery, last-mile eCommerce fulfillment, warehouse management, and IoT-powered tracking. Unlike other market players, SLGTrax is not reliant on external vendors for core services, making it a self-sufficient logistics operator in the country and controller of all the experience and service in the supply chain. This control over the supply chain allows them to convert customers that are not satisfied with other logistics service providers such as PostEx.
Moreover, the company is in the process of launching LogiServe as a Non-Banking Finance Company (NBFC). This move is particularly relevant in Pakistan’s eCommerce landscape, where over 90 per cent of transactions rely on cash-on-delivery, leading to liquidity bottlenecks for merchants. The NBFC will offer financial services such as invoice financing, working capital loans, and digital payment solutions integrated directly with logistics operations to unlock growth for small and medium-sized merchants.
Through the NBFC, SLGTrax will provide short-term credit, invoice discounting, and digital payment solutions by leveraging COD flows and merchant data to help SMEs, freelancers, and resellers overcome cash flow delays of 15–25 days caused by Pakistan’s cash-heavy eCommerce model. By integrating lending with SLG-Trax’s logistics network, LogiServe bridges the financing gap left by traditional banks and drives growth in the e-commerce ecosystem.
The license puts SLGTrax to efficiently compete with PostEx’s invoice factoring offering. PostEx’s invoice factoring offering has been a major driver of its growth since the company’s inception.
Globally, companies like DHL and UPS have developed similar 4PL capabilities, offering end-to-end logistics management given better ability of strategic management and enhanced use of technology. SLGTrax aims to extend its offering across the region as well.
SLGTrax has undergone a significant organizational transformation to prepare for its next phase of growth. A new leadership structure has been put in place to ensure strategic alignment and operational efficiency. Gulraiz Khan, the CEO of SLG now serves as the Group CEO.
Trax co-founder Hassan Khan has been appointed Group Deputy CEO, managing eCommerce, logistics, and warehousing. Additionally, Trax board members Asad Abdullah and Ayaz Abdullah are responsible for financial governance and investor relations.
