Pakistan-based mobility start-up BusCaro has raised $2 million to expand its bus-hailing commuting service, aiming to introduce greater order and safety into a transport system dominated by informal operators.
The latest investment round brings BusCaro’s total funding to $3.5 million. The company currently records more than 900,000 bookings a month and forecasts annualised revenue of $8.6 million by the end of 2025.
BusCaro provides daily transport for employees and students through partnerships with companies, schools and institutions. Its routes are dedicated to specific organisations and supported by a technology stack that includes live tracking, financial oversight for businesses, operational monitoring and safety features.
Scaling such services is not straightforward. “Public transport regulations in Pakistan are outdated, inconsistent, and vary across provinces and cities,” Muzaffar Narejo, Chief of Staff at BusCaro, told Zag Daily. “There is no unified framework for tech-enabled or app-based mass transit, creating compliance and taxation uncertainty for operators.”
He added that the transport ecosystem is highly fragmented, with informal, private, and public sector players operating in silos. This lack of coordination between different transport modes hinders system-wide efficiency, he explains. Rising fuel prices, inflation and passenger mistrust of public systems are further obstacles.
Safer transport in smaller cities
BusCaro currently has over 80 corporate clients across Karachi, Lahore, Islamabad, and Rawalpindi.
The new funding will also support expansion into tier-2 cities. These cities, such as Faisalabad and Multan, are smaller urban centres with growing industrial and educational hubs but less developed transport infrastructure.
“Larger vehicles used in major cities will be replaced with lower-capacity vehicles in tier-2 cities to match lower passenger volumes,” Narejo explained. “Unlike larger cities, where convenience may justify premium services, tier-2 markets prioritise affordability. Our service offerings in these cities will reflect local price sensitivity.”
Informal operators such as rickshaws and Qingqis dominate in smaller cities and are often backed by local unions. To navigate this, BusCaro says it will seek partnerships with local governments and explore public–private collaboration models.
Narejo also pointed to the role of BusCaro in providing safer transport for women. He noted that many women in tier-2 cities face “safety and cultural barriers” to commuting, and said BusCaro aims to build on the trust it has established among women and children in major cities to offer a more reliable and accessible option in these markets.
Passengers cite reliability and safety as the main draws. One user, Iqra Shabbir, said she chooses BusCaro because “their vehicles show up on time, rides are comfortable and I feel safe.” Parent Abdul Majid added that the service makes his children’s school journeys “much easier” and provides “a sense of security about their safety.”
With funding in place, BusCaro is now preparing for both domestic expansion and eventual international markets, positioning itself as a structured alternative in a sector still dominated by informal providers.
