BusCaro

Overview

‍

Introduction

BusCaro offers a tech-driven sustainable mobility solution that serves the market by offering organisations and institutions a fleet of vehicles to transport their employees or students safely and reliably to their destinations.

‍

Problem

The current transportation infrastructure in Pakistan is in dire need to change. There is a distinct lack of safe and reliable options, and with escalating commuting costs, mobility is becoming more challenging. Not only this, the public transportation system is also broken. only 42% of current demand in Pakistans largest city can be met through public means, further exacerbating this issue.

‍

Solution

BusCaro leverages technology to connect commuters and organisations with dedicated Bus fleets. They manage route optimisation, collection, drop off and vehicle tracking. 

‍

‍

BusCaro, a transportation service, prides itself on delivering a reliable and safe experience to its customers. With a strong focus on reliability, BusCaro ensures timely pickup and drop off at customers' doorsteps or the nearest location, supported by dedicated backup services to ensure seamless completion of all bookings. The company's impressive on-time metrics, with 20,000 daily bookings and over 990k bookings achieved in Q2 2023, underscore its commitment to punctuality, recognizing the importance of getting customers to work or school on time.

When it comes to safety, BusCaro goes above and beyond to prioritize the well-being of its customers. Thorough captain verification and vehicle inspections are conducted regularly to ensure that only qualified and trustworthy individuals are part of the company's network. Furthermore, BusCaro has implemented a rapid response system to swiftly address any in-ride emergencies that may arise. This emphasis on safety sets BusCaro apart from public transportation, where incidents of harassment are unfortunately all too common. Additionally, BusCaro operates with 350 operational vehicles to cater to the needs of its customers efficiently.

Traction

BusCaro has had unprecedented growth in less than a year of operations. They have almost overtaken Careem, a leading transport provider, in daily bookings. Their margins are higher than any other mobility startup in the region at their stage and they are expected to continue on their positive trajectory.

Traction Highlights

• $200k monthly sales with a 15% average Gross margin.
• $2.4 million ARR, with most client contracts spanning at least 12 months.

• This level of annual revenue is unheard of for Pakistan-based mobility startups at this stage, especially at the margins BusCaro is achieving them 
• By having long-term contracts, BusCaro has stability, future revenue is relatively secure and does not require additional effort to secure.

• 20,000 daily bookings - ⅔ of Careem’s daily bookings which have been in operation since 2015. 

• Locations: They operate 350 vehicles across Karachi, Islamabad, and Lahore.
• Over 10,000 downloads app downloads with a 4-star rating on the app store.

Clientele

BusCaro is already an industry leader in B2B and B2B2C transport services. Currently, they have over 45 annual contracts with top industry names such as GSK, Foodpanda and MG Motors.

‍

Market Opportunity

Understanding their users:

Profile: BusCaro's primary users are daily commuters to workplaces or educational institutions. With rising fuel prices and the scarcity of secure commuting options, these individuals often spend between 20-50% of their income on commuting. Notably, women often need to balance safety and cost considerations more.

Market Size

‍

Funding Requirements:

Raising $250K,  to develop tech stack and scale business operations as they approach profitability.

‍

Co-Investors:

BusCaro is backed by leading emerging market VC, SOSV (43 exits, 7 unicorns), the founder of Careem and other strategic Angel investors who’ve invested in companies such as Bolt, Uber, SpaceX and more.

Strong Exit Opportunities:  Investing in Buscaro presents ample exit opportunities with international interest given the substantial user data, large customer base and scalable business model. For potential buyers, BusCaro offers the opportunity to unlock a market with a population above 230 million and proven unit economics, something which other mobility startups in the region have failed to achieve.

Key Risks

‍

Currency Risk

Risk: BusCaro operates and transacts in PKR, exposing them to potential currency devaluation causing the price of fuel to increase, which can impact operational costs and profitability.

Mitigation

• Dynamic Pricing Model: BusCaro adjusts its booking service fee based on fuel price fluctuations. When fuel prices rise, the booking service fee increases immediately, transferring the the effect price shocks away from BusCaro 
• Expenses in PKR: BusCaro holds all investments in USD in their Holding company in Singapore and only transfers funds to the Operating company as and when required, meaning minimising the funds exposed to devaluation. All expenses are also paid in PKR, reducing the impact of currency devaluation on their operations.

‍

Escalating Fuel Costs

Risk: Escalating fuel costs in Pakistan poses a considerable risk to BusCaro's operations. These rising costs can inflate operational expenses and squeeze profit margins, potentially making operations less sustainable.

Mitigation

• Price Stability: BusCaro ensures price stability by securing long-term contracts with fuel suppliers to lock in fuel prices at favourable rates.
• Electric Vehicle Transition: The company is planning to introduce electric buses into their fleet, which can significantly reduce fuel costs and environmental impact. 
• Credit Cycles with Fuel Suppliers: BusCaro has established partnerships with fuel companies. In exchange for high fuel consumption and loyalty, they secure credit cycles that allow them to delay fuel payments until they've received their own receivables, providing financial flexibility in managing fuel expenses.

‍