Padash, an Iraq-based startup offering instant food and grocery delivery services, has successfully raised $125,000 in pre-seed funding. The funding round was led by an undisclosed angel investor and positions Padash for growth as it plans to expand its operations across Erbil, the capital of the Kurdistan Region of Iraq. Founded by Ahmed Jamal, Omer Sabah, Muhammed Yassein, and Ahmed Bayiz, Padash aims to revolutionize the delivery market in Iraq through its innovative platform, promising faster delivery times and affordability for consumers.

Revolutionizing Delivery in Iraq

Founded in 2023, Padash has set its sights on transforming the way people in Iraq access food and groceries. The company’s mobile application allows consumers to order from local stores, with deliveries reaching their doorsteps in under 20 minutes. In some cases, deliveries are completed in as little as five minutes, making it a game-changer in the region’s nascent q-commerce (quick commerce) sector. The platform is already operational in four blocks of Erbil city and has ambitions to cover the majority of the city as part of its expansion strategy.

Ahmed Jamal, co-founder and CEO of Padash, explained that the pre-seed funding marks a critical milestone for the startup. The capital will not only accelerate its expansion within Erbil but also support the development of its mobile app to enhance user experience and streamline the ordering process. As part of its future plans, the company is preparing to launch in Baghdad, the capital city of Iraq, next year. This will further extend its reach and help meet the growing demand for fast and reliable delivery services in the country.

Breaking the Silence on Valuation Transparency

In a notable move that reflects the team’s commitment to transparency, Jamal revealed the company’s post-money valuation of $2 million. Such disclosures are rare in Iraq's startup ecosystem, where companies tend to keep financial details, particularly valuations, confidential. Jamal emphasized the importance of breaking this tradition to encourage other startups to understand their value and negotiate better terms with investors.

Past Experiences Shaping the Future

The founding team behind Padash is not new to the entrepreneurial world. Their previous venture, Kurdivia, was a live-trivia gaming app that gained considerable traction in Iraq, amassing 1.5 million downloads and reaching 750,000 monthly active users. However, Kurdivia ultimately faced challenges with its business model and had to shut down. Despite this setback, the team gained invaluable insights into the Iraqi market and consumer needs, which have informed the development of Padash.

Reflecting on their earlier experiences, Jamal noted that the lessons learned from Kurdivia have been instrumental in shaping the direction of Padash. The team has leveraged its knowledge from working with over 100 restaurants, cafes, and supermarkets, enabling them to build a platform that addresses real market demands. The focus now is on making instant delivery not only accessible to more consumers but also affordable—offering users a service that is 50% more affordable than competitors.

Looking Ahead

With the backing of their new investor, Padash is poised to make a significant impact on the delivery market in Iraq. The pre-seed funding will be critical in helping the company achieve its goals of rapid expansion and providing improved services to its users. The team’s vision extends beyond Erbil, with plans to roll out operations in Baghdad and, eventually, across Iraq.

Padash’s journey also underscores the growing momentum in Iraq’s startup scene. This year alone, the country has seen seven investments in startups—almost double the number from 2023. As the ecosystem continues to develop, Padash’s bold approach and commitment to transparency could serve as an inspiration for other entrepreneurs looking to make their mark in Iraq.

Padash’s $125,000 pre-seed funding round is a significant step forward for the company and a milestone for Iraq’s startup ecosystem. Led by a dedicated team with experience in the market, Padash is well-positioned to revolutionize the delivery of food and groceries in Iraq, offering fast, affordable, and reliable services to consumers. With the new funding, the company is on track to expand its operations, enhance its technology, and make instant delivery accessible to more people across the country.