Kaymu, a Rocket Internet-funded online marketplace for individuals and small shopkeepers, was launched almost two and a half years ago in Pakistan. Its business model relies on entering frontier markets in Asia where modern trade channels (i.e. hypermarkets, convenience stores) have not yet set foot.
The founders at Kaymu believe that the quick adoption of smartphones can help develop the ecommerce market as the primary retail channel even before the traditional brick-and-mortar retailers enter the market.
However, the open marketplace model employed by Kaymu faces several challenges such as counterfeit goods and increasing competition among local startups. Given the already low margins in frontier markets in addition to the challenges faced, it will be interesting to see how Kaymu continues to grow.