Latest news with #Zarea
Business Recorder
15-07-2025
- Business
- Business Recorder
Pakistan's Zarea sets up subsidiary in Dubai to drive global expansion
Zarea Limited, one of Pakistan's largest commodities B2B platforms, has taken a key step towards global expansion with the successful incorporation of a wholly owned subsidiary in Dubai, United Arab Emirates (UAE). The listed company disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Tuesday. 'We are pleased to inform you that pursuant to the approval of the Board of Directors of Zarea Limited the company has successfully incorporated a wholly owned subsidiary in the UAE under the name ZAREA COMMERCE FZCO,' read the notice. Zarea said the incorporation of this UAE-based entity marks a major milestone in the company's global expansion strategy. 'With the launch of our regional headquarters in Dubai, Zarea is now well-positioned to expand into international markets and strengthen its role in technology-driven B2B trade. 'This initiative is a cornerstone of our long-term growth strategy—expanding our global footprint, strengthening overseas operations, accelerating export-led growth, digitising trade, and unlocking new markets worldwide,' it said. Zarea remains confident that the strategic investment will accelerate its long-term growth trajectory and generate sustained value for its shareholders. Earlier this year, the B2B commerce platform raised Rs1.03 billion by selling 62.5 million shares in the 2025 first initial public offering (IPO) at the PSX. Back then, Zarea said that the IPO proceeds would be strategically deployed to drive its continued expansion and operational efficiency. A significant portion of the working capital will be invested in Agri Biomass, a rapidly growing sector as businesses increasingly adopt renewable and sustainable energy solutions. Additionally, 24% of the proceeds will be utilised to establish an in-house logistics model, allowing Zarea to transition away from third-party logistics providers. Furthermore, 12% of the proceeds will be directed toward technology upgrades to ensure scalability and enhance the customer experience. The remaining funds will be allocated to marketing, human resources, and office expansion.
Business Recorder
01-05-2025
- Business
- Business Recorder
Zarea Limited unveils record growth, expansion plans
LAHORE: Zarea Limited, Pakistan's fastest-growing B2B commodities marketplace, announced outstanding financial performance and major expansion initiatives during its corporate briefing session this week. With robust growth indicators, strategic expansion, and a highly attractive valuation, Zarea is positioning itself as one of the most promising investment opportunities on the Pakistan Stock Exchange (PSX). Exceptional Financial Performance: • Net Revenue for 9MFY25 reached PKR 805 million, reflecting a 207% CAGR since FY21. • Net Profit surged to PKR 454 million, recording a 233% CAGR. • Return on Equity (ROE) stands at a strong 22%, among the highest in the PSX technology sector. Attractive Valuation & Investment Upside: • Zarea's shares are currently trading at a P/E ratio of 6.81x, representing an 82% discount compared to the tech sector average of 37.92x. • Based on financial performance, sector positioning, and peer benchmarking, a Buy stance has been recommended with a 12-month target price of PKR 30–32 per share, implying a potential upside of over 80% from current levels. • With strong profitability and a growing cash base, future dividend payouts are also expected to commence, further enhancing total shareholder returns. Robust Balance Sheet: • Shareholders' Equity rose to PKR 2.06 billion by 9MFY25. • Asset base expanded from PKR 629 million in FY24 to PKR 2.1 billion in 9MFY25. Strategic Growth Initiatives: • Launch of Import Division for industrial procurement. • Initiation of Export Division with a targeted $10 million in revenues over three years. • Establishment of an in-house logistics arm to optimize delivery and service. • Expansion into value-added agricultural processing. • Major digital platform upgrades to enhance user experience and drive retention. Regional Benchmarking: Zarea is following a proven trajectory set by regional B2B unicorns such as Udaan and OfBusiness in India, both achieving multi-billion-dollar valuations through digital disruption of commodity procurement. With Pakistan's commodities sector valued at over USD 20 billion, Zarea's target to capture 1% market share over the next decade unlocks enormous potential for scale, valuation uplift, and regional leadership. Copyright Business Recorder, 2025
