Karandaaz Capital

Supporting Access to Finance for Businesses
through Commercial Investments

Direct Investments

The focus of direct investments is on deploying growth capital in small and medium enterprises (SMEs) with potential for profitable growth and employment generation, in addition to generating risk-adjusted financial returns for Karandaaz.

Apply for Direct Investment
BACK TO WHAT WE DO

Karandaaz’s investment policy has double bottom line objectives in terms of development impact and financial sustainability.

Investment Criteria

Company size
  • Revenue up to $15m; Assets up to $15m; Employees up to 300
Ticket size
  • Up to $5m; larger with co-investors
Ownership stake
  • Not more than 50%; significant minority, opportunistic control
Investment type
  • Growth Capital: Common Equity, Preferred Equity, Convertible Debt, Structured Credit
Geography
  • Pakistan as principal place of assets and jobs creation
Sector focus
  • Includes Education, Healthcare, Agriculture, Logistics, Construction, Retail & Wholesale
Target holding period
  • Up to 7 years
Economic impact
  • Employment support (esp. women and youth)
  • Revenue growth

Karandaaz has made an investment for 27 percent equity stakes in Wahdat Poultry Farms, based in Sargodha. Established in 2007, Wahdat Farm is a pioneer in introducing Pakistan to branded healthy eggs through automated technology with a daily production capacity of over 200,000 eggs. Karandaaz’s investment will be used as growth capital by Wahdat Farms to increase the number of sheds. As a result, the egg production and bird rearing capacity of Wahdat Farm will increase considerably. The per capita annual consumption of eggs in Pakistan is only 90 versus a global average of 300 leaving a significant nutrition gap. With a rising middle class, the per capita consumption of eggs especially the branded and healthier eggs is expected to grow at a fast pace.

Karandaaz’s equity investment in Secure Logistics (Pvt) Ltd (SLG) with added co-investment from an international investor, Saudi Bugshan Group (Bugshan Group), totals to PKR 1.2 billion. The investment, in addition to enabling SLG to expand its existing long-haul fleet, will also help it in expanding into additional segments of short-haul distribution and warehousing – thus becoming a leading domestic 3 PL player offering “one-window solutions” to clients supported by an in-house vehicle and asset tracking capability. The investment is expected to create more than 600 direct and indirect additional jobs in the logistics sector of the country.

Karandaaz Pakistan has invested in National Rural Support Programme (NRSP) Agriculture Processing Company Limited (APCL) as an agriculture value chain proposition for small-holding rice farmers. NRSP APCL aims to scale up opportunities for warehousing, financial inclusion, and the incidence of rural industrialization for farmers without compromising the principles of scalability, food security, profitability, and sustainability. Additionally, Karandaaz investment in APC is expected to demonstrate value chain services including warehousing at scale for the first time in the country.

HAC Agri Controlled Atmosphere Warehouse ensure availability of off-season fruits and vegetables with same freshness and quality as that in in-season. Karandaaz Pakistan is investing in HAC Agri which will setup the first state-of-the-art Controlled Atmosphere Warehouse in Punjab. Such investments, in high growth businesses will boost job creation and economic growth in the country.

Excel Labs, one of the largest laboratory and diagnostic services providers in Pakistan, has presences at more than 60 locations across Punjab, Khyber Paktunkhwa and Azad Jammu & Kashmir. The labs offer a total of 727 tests. Karandaaz’s investment will be used by Excel Labs for expansion of its current operations and additions of new, high margin business lines.

Techlogix is a leading IT services and enterprise solutions company with operations based out of Pakistan. Techlogix has developed innovative and cost-effective software-as-a-service enterprise solutions for the higher education, microfinance, and large-scale distribution sectors. Investment from Karandaaz is helping Techlogix further develop and market its solutions locally and internationally and generate employment opportunities in Pakistan.

Financial Partners

Copyrights © 2019 Karandaaz Pakistan
Non-profit company registered under Section 42 of the Companies Act, 2017