BusCaro secures $2 million to enhance safe transport in Pakistan

In Pakistan, BusCaro, a public transport company founded in 2022 by Maha Shahad, has been transforming the public transport landscape, especially for women and children. It recently announced that it raised $2 million in new funding. This funding will aid in expanding its innovative ride-sharing service across major cities like Lahore, Karachi, Islamabad, and Rawalpindi. The service, which has quickly become popular, focuses on providing a safe commuting option, particularly for women and students, making public transport more reliable and accessible. BusCaro operates under a robust business model that distinguishes it from past vehicle-sharing attempts by companies like Swvl and Airlift, which could not achieve sufficient scale. Instead of targeting individual passengers, BusCaro has strategically onboarded organizations, which significantly boosts its user base and adds credibility. Partnerships with both private and public-sector employers, including reputable organizations like PepsiCo and Indus Hospital, have further supported its operational strategy. This has contributed to BusCaro achieving annual recurring revenues exceeding $6 million, with projections to reach $8.6 million by year’s end. The company's commitment to safety is central to its mission. Background checks are conducted for all drivers, and their vehicles are verified for roadworthiness. Parents can also monitor their children’s safety while using BusCaro's services, which enhances trust among users. This focus on safety has made a significant impact—especially among young women—by allowing them greater freedom to travel for work and education. The initial hesitance of parents, manifested in their following the buses on the first day of a new service, quickly turned into trust as the service proved reliable, as evidenced by the significant increase in ridership shortly thereafter. The government of Punjab has recognized the need for affordable and safe public transport, particularly for underserved populations in Pakistan. Finance Minister Bilal Azhar Kayani advocates for such services to empower women, underlining the significance of safe commuting options. However, BusCaro faces challenges related to working capital as it commits to fast payment terms for its drivers, ensuring they maintain their vehicles. The investment round was led by Daman Investments, with contributions from other investors, underscoring the confidence in BusCaro as a solution to a pressing need in Pakistani society.