Pathao, a Bangladeshi startup, has achieved profitability in a challenging startup ecosystem, a remarkable feat considering the circumstances.
The company reached profitability in mid-2022, while many of its competitors were struggling due to investment and consumption slowdowns related to the Ukraine war. The pandemic acted as a catalyst for this success, prompting Pathao to invest heavily in its logistics services, anticipating a surge in demand for online shopping outside the capital.
Pathao Courier, a key component of Pathao’s logistics service, has seen tremendous growth over the last two years, delivering around 100,000 parcels per day and accounting for half of the third-party logistics (3PL) market.
Pathao has become the preferred logistics partner for e-commerce entrepreneurs in Bangladesh, thanks to its reliable and timely service. More than two-thirds of Pathao Courier parcels are now delivered outside Dhaka.
Pathao’s other two verticals – ride-hailing and food delivery – are also profitable, making it the only profitable operation in those segments. The company attributes its success to offering the right products to the right people, providing value in an affordable manner, managing costs for financial sustainability, and maintaining a strong internal ecosystem, including a robust technology backbone.
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In a funding-constrained environment, Pathao is thriving with its own cash flow, having raised million in total. The company generated million in revenue in 2022.
Pathao’s future plans include a focus on fintech, introducing digital payment and embedded finance services to e-commerce and f-commerce merchants, helping them with working capital needs and business growth.
Pathao is also working on rolling out its mobile wallet, Pathao Pay, and has applied for a digital bank license from the central bank.
