Pakistan’s YCombinator-backed e-commerce logistics startup Rider, the sole publicly-listed Express Courier Logistics Company in the country, is actively considering the acquisition of BlueEx (PSX: UNIV).
Founder and CEO of Rider, Salman Allana, clarified to Reuters, stating, “Our focus is on acquiring the e-commerce logistics segment currently operating under the BlueEx brand. This acquisition pertains exclusively to this business division, rather than Universal Network System Limited as a whole.”
If the proposed transaction successfully materializes, it would be the first instance of a startup acquiring a publicly-listed company and a significant milestone as the first major acquisition involving a firm listed on Pakistan’s Growth Enterprise Market (GEM) board, hosted by the Pakistan Stock Exchange (PSX).
The GEM Board serves as a dedicated platform to support the growth of enterprises, irrespective of their size or stage of development, in their quest for capital-raising opportunities.
While specific financial details of the transaction remain undisclosed at this juncture, Rider expects that the acquisition could position them among the top three contenders in the ecommerce logistics sector.
Salman Allana highlighted, “This development is poised to place us ahead of certain incumbent players. Our competitors in the top three ranks are well-established entities that have maintained their leadership status through nationwide services.”
Earlier, Universal Network Systems Limited (UNSL), parent company of BlueEx, informed PSX in a stock filing on Tuesday that it had received an acquisition offer from TPL Logistics (Private) Limited for its domestic e-commerce division.
The company’s board authorized Danish Elahi, a Non-Executive Director, to oversee all necessary steps and negotiations.
BlueEx began as a courier company in 2005 before transitioning to ecommerce logistics in 2011. The company offers local and international cargo shipments, courier services, document deliveries, and ecommerce logistics solutions.
Notably, BlueEx is the first listed courier and logistics sector company on the Pakistan Stock Exchange. The bulk of its revenue, approximately 96%, comes from courier services, while the remaining 4% is split between international freight services and cargo services for international airlines.
Amidst a backdrop of a global funding downturn and complex macroeconomic and political conditions within Pakistan, venture funding in the country saw a significant decline, with only $6.8 million recorded during the third quarter of 2023. This marks an 87.7% year-on-year decrease from the $55 million invested during the same period in the previous year.
