Daraz reaches group level profit as Pakistan's online retail turns to sustainability
Pakistan's biggest online marketplace became profitable across the group in July, The Express Tribune reported. Online shopping is still only 2 to 3 percent of retail.
Daraz, the largest ecommerce platform in Pakistan, reached profitability at group level in July, according to The Express Tribune. The newspaper's Islamabad correspondent, Zafar Bhutta, reported the milestone on 15 August, citing people familiar with the matter. They were not named.
The report matters because it is rare good news for a sector that has lost several well known names. It said Daraz holds the biggest share of the local market. We could not find a public statement from the company confirming the figure, so the claim rests on the Tribune's sources.
The paper put the result in context. Pakistan has more than 250 million people, yet online commerce makes up only about 2 to 3 percent of overall retail. Most consumer spending still happens in shops and markets.
From growth at any cost to delivery economics
The Tribune described the first generation of platforms, Careem, Foodpanda and Daraz, as the ones that taught Pakistanis to use apps for rides, meals and shopping. It then listed what has changed. Airlift, the quick commerce startup, has shut down. Careem has left ride hailing. Foodpanda still operates, inDrive is growing and Yango has entered the market.
The report argued that sustainable growth now depends less on winning new users and more on the economics of delivery. Industry officials quoted in the piece said demographics and connectivity create reach but do not automatically create durable businesses.
Profit, the business publication of Pakistan Today, picked up the story on 19 August. It said the sector had moved from venture funded growth, built on subsidised pricing, free delivery and promotions, towards a focus on unit economics, customer retention and self funded expansion. It listed inflation, higher taxes and compliance costs, price sensitive shoppers and tighter investment capital as pressures.
Profit also named the next tests for the industry: seller quality, reliable returns and refunds, reach beyond the big cities, wider use of digital payments and consumer trust. As both papers put it, the next phase will be judged by how durably platforms can operate, not by how quickly they grow.
Reported from coverage in The Express Tribune and Profit.
