Three Pivots Later, How Will Agritech Startup Tazah Deal With The International E-commerce Business?

If you’re a startup in Pakistan, you need the superpower of shapeshifting; quick reflexes, a sharp eye for opportunity, and the ability to regear in an entirely new direction if the need presents. Tazah Technologies knows this reality all too well. Originally launched as an agritech marketplace with ambitions to streamline Pakistan’s fresh produce supply chain, the company has now pivoted into cross-border e-commerce. 

Why? 

Because in a market where operational hurdles can stall even the most well-funded ventures, adaptability isn’t just a strength, it’s survival. By leveraging its logistical expertise and tech-driven approach, Tazah is now tapping into global trade, proving that sometimes, the best way forward is a completely new path.

This story maps out the journey of how Tazah Technologies navigated a challenging economic landscape, the rationale behind its pivot, and how Zambeel is positioning itself in the highly competitive world of international e-commerce.

Tazah bites the dust

Founded in 2021 by former Careem executives Abrar Bajwa and Mohsin Zaka, Tazah embarked on a mission to digitise Pakistan’s agricultural supply chain. This was a promising company, considering that even though Pakistan is an agricultural economy, the sector accounts for only 23% of the GDP but together with agro-based products fetches 80% of the country’s total export earnings. Yet, the sector remains difficult and the entire supply chain network requires technological advancement to match global standards. 

Tazah technologies aimed to revolutionise the movement of produce from farms to retailers, enhancing efficiency and price transparency. Initially, Tazah’s vision was to address the inefficiencies in Pakistan’s agriculture sector. The sector is plagued by fragmented supply chains, leading to inflated prices and significant food wastage. To combat these issues, Tazah developed a B2B marketplace connecting farmers directly with retailers, aiming to streamline operations, reduce post-harvest losses, and ensure that retailers receive high-quality products while farmers gain better market access and fair compensation.

Their efforts garnered substantial support, with a $2 million pre-seed funding round in October 2021 led by Global Founders Capital and Zayn Capital, followed by an additional $4.5 million in December 2021, bringing the total pre-seed funding to $6.5 million. 

Seven months into business, Tazah realised that something wasn’t right. Despite early successes, including a remarkable 1000% growth shortly after launch, Tazah encountered significant operational challenges. The high costs associated with scaling in a cash-intensive industry, coupled with a tightening venture capital environment, necessitated a reevaluation of their business model. Agritech companies around the world function on a high cash burn model and Tazah realised that it had missed the narrow window of opportunity when this business model would reap high returns. However, they also realised that they had two thirds of the capital still lying around and they had time to switch gears. 

Recognising the need for a more sustainable approach, the founders decided to pivot towards a lower cash burn model and started financing the sale and purchase of maize and rice in March 2022.

This model improved margins while reducing burn rates. The company had the advantage of significant remaining capital of around $4 million which provided room to maneuver and Tazah 2.0 was born.

Abrar Bajwa, co-founder of Tazah, told Profit, “This new model was working out for us and we could have even raised an additional $2 million had we kept at it but there was an issue.”

Soon after the pivot from fresh produce to just maize and rice, the company ran into a problem the entire startup ecosystem and other business sectors all know too well. 

The macroeconomic conditions of Pakistan became extremely turbulent and lending became increasingly expensive, considering the soaring interest rates. Since Tazah functioned on credit lending and the interest rates were squeezing credit markets, the company found itself vulnerable to payment delays and defaults in a low-margin business. 

Then, in the third quarter of 2022, came the third pivot and something all startups do when they are desperately clawing at straws, trying not to go under.

Can you guess what?

Well, of course, they started building a software as a service (SaaS) product for agriculture manufacturing, aiming to target another aspect within the agricultural space. 

Let’s call it Tazah 3.0, the SaaS chapter. 

This product was directed towards digitising and automating the distribution of pesticide and seed manufacturers. 

Bajwa recalled, “The traction was such that we had to implement it fully to prove it. Some basic product was developed, after which we took it to the market and started discussions about how much it would sell for – $500 per month, $1000 per month, and what format it would take, etc.”

Continuing, he added, “Then another change happened at the macro level. Imports in Pakistan were completely restricted by the government, remember? Our agriculture industry, especially the pesticide industry, relies on Chinese imports. The precursors they use to mix and create pesticides here- they said their own survival was at stake. ” We don’t even have the raw materials to manufacture what we can sell here. We’ll look at your subscription later.”

Despite the traction Tazah achieved with its revised model, it became clear that external factors were making it increasingly difficult to sustain long-term growth in the agricultural sector.

And there went Tazah’s second pivot down the drain. 

The founders had lost all hope in Pakistan by this point. The market was so unreliable and always at the mercy of the country’s everchanging macroeconomic conditions that they decided to give up on not just the agriculture sector, but also the country all together. 

Bajwa shared, “After these two or three things, where I got some experience, I became somewhat disheartened with Pakistan because things were deteriorating so aggressively at a macroeconomic level that whenever we started something, one problem would lead to another.”

“We made an attempt to sell the same SaaS internationally for about two to three months, but it wasn’t very successful. As we began marketing the product, particularly in the Middle East, we quickly realised that the SaaS infrastructure globally, especially in that region, was far more advanced than what we had built in Pakistan. Closing that gap would have required an additional six to eight months of development just to meet market standards. Ultimately, we decided that investing that much time and effort wasn’t the best path forward.”

When asked whether repurposing their tech stack was necessary for them, Bajwa answered, “My perspective is that a startup’s core business should generate revenue. Simply selling the technology you’ve built isn’t a reliable model for long-term success. While many startups try to pivot by monetising their tech as we did, in most cases, it’s not a sustainable or profitable approach. Instead, the focus should always be on building a business that stands on its own and creates real economic value.”

So, they did what any dedicated team would do; they went back to the drawing board. Again. 

They, rather belatedly, realised that Pakistan and culture weren’t the primary considerations. What truly mattered was building something meaningful that solved a problem for a large number of people. So, they started with a clean slate, this time determined to make it work. 

“We started throwing ideas and determining which market made the most sense to target. The closest and most viable option was the UAE,” said Bajwa. 

And that is when Tazah was out the window for good. So was the Pakistani market. But one thing they still held strongly was agricultural produce. 

Finally, the founders decided that cross-border e-commerce was their calling.

This move would allow them to capitalise on global markets while mitigating domestic operational hurdles.

This strategic shift led to the creation of Tazah Global, a platform designed to connect international food and agriculture buyers with Pakistani produce. By facilitating cross-border trade, Tazah Global aimed to bridge the gap between local suppliers and global demand, opening new revenue streams for Pakistani farmers and businesses. This move positioned Pakistan as a key player in the global agricultural market.

But they knew the sector was volatile and decided to diversify Tazah’s portfolio. 

The company expanded its reach through MyZambeel.com, a fully owned subsidiary focused on empowering entrepreneurs via cross-border e-commerce, dedicated to providing efficient warehousing, fulfillment, and logistics services. 

MyZambeel sources high-demand products directly from manufacturers in countries like China, India, Pakistan, and the UAE, offering them at OEM prices to resellers in the UAE and Saudi Arabia. This model enabled small and medium-sized enterprises to access quality products competitively, increasing their income potential.

By building a robust on-ground team, Zambeel ensured seamless operations for SMEs, corporates, and e-commerce companies aiming to enter the MENA region, regardless of their location. This infrastructure reduces operational costs and enhances service quality, making cross-border transactions more accessible and reliable. 

When asked whether it is possible for a startup within the agricultural sector to succeed, since all three of Tazah’s attempts failed, Bajwa replied, “There’s definitely potential to build a business in agriculture, but unless you’re working on something highly scientific, like developing new seed technology, it can be incredibly challenging. The main issue is that venture capital thrives on consistent, scalable growth, whereas agriculture is inherently seasonal and influenced by numerous external factors.”

For a VC-backed business, growth is expected to follow a steady upward trajectory, but in agriculture, growth fluctuates due to seasonal cycles and unpredictable market conditions. This mismatch makes agriculture and venture capital a difficult combination.

“What we realized was that many aspects of the agriculture business operate like clockwork, certain products are cheaper at specific times of the year, and there are opportunities to buy and sell strategically. However, when it comes to scaling a pure technology-driven business in agriculture under the VC model, it simply doesn’t align well.”

A Clean Slate

Launched in August 2023, Zambeel marked a strategic departure from the original vision of Tazah, yet retained the underlying philosophy of leveraging technology to solve inefficiencies in supply chains. And this time not just within the agri sector. 

We asked Bajwa why he and his co-founder decided to call this new venture Zambeel.

He explained that the name “Zambeel” has an interesting origin. 

“If you go back to folklore, you might remember the legendary character Umro Ayyar. One of his defining traits was his magical bag, in which he could store anything he wanted. In Arabic, zambeel means “bag,” and this mythical sack could hold an endless number of items, making it a fitting inspiration for our platform.”

He shared that the name Zambeel actually predates even Tazah. “Before launching Tazah, Mohsin and I were working on another startup, and Zambeel was a name we had considered back then. When we eventually decided to build this new venture, we thought, “Why not bring back that name?” So, we revived Zambeel and built it into what it is today.”

But what exactly is Zambeel Logistics and how does it work?

Zambeel operates as a hybrid between a dropshipping supplier and a fulfillment provider. The platform allows small businesses and individual sellers to list products at a retail price while Zambeel manages fulfillment, warehousing, and last-mile delivery.

Bajwa explained, “When users sign up on our platform, they essentially tap into our inventory. Our products are listed at wholesale prices, and sellers pick them up, not physically, but by listing them on their own online stores.”

Continuing, he elaborated, “For example, they create a store on Easy Order, set their own retail prices, and handle digital marketing to generate sales. Once an order comes in, we take care of fulfillment. Let’s say a product is listed at 20 dirhams wholesale, and the delivery cost is another 20 dirhams. The seller might price it at 100 dirhams for their customers. When they receive an order, we handle the delivery for 40 dirhams in total, ensuring a seamless transaction. That’s the core structure of the model.”

Zambeel’s  inventory spans electronics, household goods, and kitchenware, marking a complete departure from Tazah’s original focus on agricultural produce.

The new venture’s expansion strategy has been aggressive yet calculated, according to Bajwa. The company initially set up operations in the UAE, recognizing its role as a key international trading hub. Within months, it began attracting sign-ups from India, Bangladesh, Saudi Arabia, and the United States. It then expanded into Saudi Arabia and Kuwait, leveraging its growing expertise in cross-border logistics.

“We started with e-commerce, aiming to help businesses in low-income countries access high-income markets and launch successfully. Our first step was establishing a 3PL business focused on warehousing and fulfillment,” Bajwa explained.

He added, “More recently, we moved into dropshipping, recognizing the demand for this model. Dropshipping has been around for nearly two decades, with major players like CJ Drop Shipping in China generating $20-25 million in monthly revenue. By entering this space, we positioned ourselves as a faster, more efficient alternative, particularly for businesses in the Middle East and South Asia.”

Zambeel has evolved into a multi-faceted business, offering services beyond dropshipping. Customers can purchase inventory, use Zambeel as a logistics partner, or leverage its shipping solutions. While the company initially considered selling its SaaS model externally, it realized the true value lies in the capabilities it has built internally, which continue to drive growth.

With further regional expansion on the horizon, Bajwa reflected on how their perspective has shifted, “Where we once celebrated launching in new cities within Pakistan, we now scale across entire countries at a much faster pace.”

Today, Zambeel operates multiple business models, from dropshipping and individual sourcing to last-mile delivery and brand partnerships. By diversifying its offerings and expanding into new markets, the company has positioned itself as a key player in the global e-commerce ecosystem.

Into unknown waters

With this final pivot, the company has not only entered uncharted waters, but also one invested with sharks much bigger than Zambeel. 

In the fast-paced world of e-commerce, Zambeel competes with global giants like AliExpress, which has its own B2B dropshipping arm. However, what sets Zambeel apart is its ability to deliver products faster, especially within the Middle East and South Asia, giving it a crucial edge over international players that struggle with long shipping times and complex logistics.

While AliExpress dominates globally, the real competition in this region comes from companies like Tiger, an e-commerce firm that recently secured $55 million in funding, along with a few Moroccan startups optimizing similar models for regional sustainability. Despite these competitors, Zambeel differentiates itself by maintaining a lean, high-efficiency model that ensures profitability on each transaction. This approach, shaped by lessons from Tazah’s earlier challenges, allows the company to scale without high burn rates, a stark contrast to many venture-backed startups that prioritize rapid expansion over financial sustainability.

Expanding across multiple markets presents significant challenges, particularly in navigating diverse regulatory landscapes, trade laws, and tax structures. 

The Zambeel team tackled these hurdles through a trial-and-error approach, entering new markets, learning from setbacks, and adapting quickly.

“We had never operated outside Pakistan before,” Bajwa admitted. “Everything we did was based on trust and learning from experience.”

“Each country demands a tailored logistics strategy, shipping cosmetics from China differs from moving fasteners or chips from the UAE to Saudi Arabia. Optimising land and air routes while managing customs regulations in Kuwait, Saudi Arabia, and beyond remains an ongoing challenge,” he finished explaining. 

Zambeel’s expansion has been a continuous learning process. With limited knowledge at the UAE launch, the team adapted on the go. By the time they entered Saudi Arabia, they had refined operations, and when expanding into Kuwait, they leveraged key lessons from previous experiences.

Operating across multiple geographies requires agility. Regulations and market conditions evolve constantly, making flexibility and continuous improvement essential. Zambeel’s ability to embrace change and navigate complexities has been crucial in building a scalable cross-border model.

When asked whether Zambeel is sustainable, Bajwa said, “For Zambeel, sustainability means financial stability, and we have effectively eliminated the “life-or-death” question that plagues many startups. Unlike high-burn models, Zambeel generates profit on every transaction, ensuring a self-sustaining business. With a nine-year runway and minimal burn, we are in a strong financial position.”

As the burn rate decreases, the runway expands exponentially. In fact, Zambeel reached breakeven within just two months, meaning it not only covered costs but even generated a small profit early on. With significant capital reserves, the company can comfortably manage fixed costs while investing in future expansion.

Scaling into new markets naturally comes with additional expenses; hiring teams, acquiring trade licenses, setting up warehouses, and maintaining inventory. These upfront costs are necessary for long-term growth, which is why Zambeel prioritises strategic investments over short-term profitability.

While the company could already generate substantial profits, it operates close to a break-even burn rate to maximize runway and ensure long-term scalability. This approach positions Zambeel for sustainable growth while maintaining financial flexibility to expand into new regions.

By focusing on operational efficiency, market adaptability, and a sustainable financial model, Zambeel has positioned itself as a formidable competitor in the regional and global e-commerce landscape.

The stakeholder you can’t forget 

Throughout its pivoting journey, the company managed its $6.5 million in funding strategically.

Bajwa explained, “As we transitioned through different models, we kept our investors informed. When we decided to shut down our initial model, we were upfront about our reasoning—we still had capital, but we didn’t believe it was best deployed in that approach, so we had to pivot. Some investors were initially skeptical, but as market conditions continued to shift, they understood our decision.”

From there, the company moved to a second model and later a third, maintaining transparency at every stage.

“When we pivoted to Zambeel, we once again walked our investors through the challenges of operating in Pakistan, particularly the risks of being a PKR-denominated business. We had raised capital when the exchange rate was around PKR 160 per USD, and within a year, rapid currency devaluation reinforced the need for a more globally resilient model. Our vision remained the same—to build something meaningful and scalable—but the strategy had to evolve,” Bajwa shared.

By securing funding ahead of each transition, the company ensured financial stability, allowing it to focus on building a sustainable business. “Today, we still have significant capital reserves, enabling us to leverage the technology we’ve built in a way that creates lasting value,” he added.

One of the most notable aspects of Zambeel’s journey is its ability to retain investor confidence despite multiple pivots. The startup initially raised over $6.5 million in pre-seed funding under Tazah and maintained strong relationships with its backers. Transparency played a key role, as the founders consistently communicated their reasoning and demonstrated an understanding of market dynamics.

Now, Zambeel, which started with $3 million left over from Tazah, operates with a nine-year financial runway and a break-even burn rate. As highlighted earlier, within just two months of launching, the company reached breakeven, proving the sustainability of its model.

Scaling Zambeel 

With a team of around 70 people, with 55 in Pakistan, a growing presence in Egypt, and teams in Saudi Arabia and the UAE, Zambeel is well-positioned for further expansion. The company’s focus remains on refining logistics, enhancing its platform’s capabilities, and expanding into additional high-growth markets. By optimising supply chain efficiencies and leveraging data-driven insights, Zambeel aims to solidify its role as a key player in the cross-border e-commerce space.

The journey from Tazah Technologies to Zambeel is a testament to the power of strategic pivots in the startup ecosystem. Recognizing early on that their initial model was unsustainable, the founders made bold decisions to realign their business with emerging market opportunities. Their resilience and adaptability reinforce a broader lesson for entrepreneurs: while pivoting can be challenging, it often leads to unexpected opportunities and long-term success.

Zambeel’s evolution underscores a crucial insight: startups that embrace change, learn from setbacks, and stay agile are the ones that thrive in an ever-shifting global economy. While its success story is still unfolding, the company’s rapid growth and sustainable financial model suggest that this latest pivot has positioned it for long-term success.

Tazah’s transformation from a domestic agritech startup to a dynamic, multi-market enterprise highlights the importance of adaptability in Pakistan’s volatile business landscape. By identifying and responding to both local and global challenges, the company has redefined its trajectory, ensuring both sustainability and growth. Zambeel’s story serves as an inspiration for entrepreneurs everywhere. Sometimes, the best way forward is a fresh start in an entirely new direction.

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