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The Rise of Padash
Promising deliveries in under 20 minutes, with some orders arriving in as little as 5, that’s how Padash reimagined food and grocery delivery in Kurdistan and Iraq. Founded by Kurdish entrepreneurs Ahmed Jamal, Omer Sabah, Muhammed Yassein, and Ahmed Bayiz, Padash was one of the dynamic startups part of the Growth Track of StartMashreq Program, in partnership with IFC Middle East and the Government of the Netherlands.
Padash’s origins are rooted in the triumphs and trials of the founding team’s earlier venture, Kurdivia, a live trivia gaming app that captivated audiences with 1.5 million downloads and 750,000 monthly active users. Despite growing user engagement, the team faced a sobering realization: Kurdivia lacked the scalability to sustain long-term success. Faced with this crossroads, the founders made the tough decision to shut it down—not as a failure but as a strategic pivot as the game wasn’t scalable.
Later, the team of Kurdivia also developed a coupon and discount platform for restaurants as part of their pivoting mindset. However, as their founder Ahmed Jamal explains, “the market was 10 years too early for that idea”.
Through this journey, they uncovered a deeper understanding of their market: it wasn’t just about sticking to a solution but about truly meeting customer needs. Kurdivia taught them to prioritize adaptability over attachment and focus on creating value that resonates with their audience. These lessons became the cornerstone of Padash’s business model, enabling the team to anticipate market demands and build a service that aligns seamlessly with the fast-paced lives of their customers.
Early Challenges
The road to Padash was far from smooth. The team encountered a series of challenges that pushed them to the brink, but each struggle became a stepping stone to understanding the true nature of their market.
After three and a half years of trial, error, and iteration, it wasn’t until the last ten months that Padash finally identified the core problem they were determined to solve: instant grocery delivery. They weren’t just launching another service, they were filling a significant gap that had been overlooked by others. But the difficulties didn’t end there.
Padash faced a host of systemic challenges in a country where the economy was still largely cash-based, and online payment systems were severely underdeveloped. The digital landscape was a constant hurdle. With many vendors struggling with inventory management and frequent stock shortages, the team was forced to find ways to adapt and ensure smooth operations despite these constraints.
As if these operational barriers weren’t enough, Padash also grappled with the struggles of digital marketing. The Kurdish language, integral to the region’s identity, was not easily supported on major online platforms, making effective communication an uphill battle.
Every obstacle, however, forced the team to dig deeper, reevaluate their approach, and refine their vision. No matter the circumstances, their goal remained unwavering: to reach their customers, regardless of the market stage or challenges. This determination drove them to adapt and become more flexible by forming additional partnerships with stores to minimize inventory issues and sudden shortages. They also adjusted their social media strategy, incorporating Arabic and English alongside Kurdish to better navigate platform algorithms. Moreover, they embraced cash payments to ensure customers felt more comfortable using Padash.
The Art of Pivot
When Padash launched in February 2024, the journey to gain traction was anything but a smooth ride. Despite the odds, the startup quickly gained momentum, partnering with 30 local stores and attracting over 2,000 active users.
The team remained committed to the problem, not the solution. As Ahmed Jamal put it, "It’s not about what you think they want; it’s about what they are actually willing to pay for." This insight led to their pivotal shift. By tuning into the true needs of their customers, they were able to refine their offering and develop an instant grocery delivery suitable for their market. The results were immediate. With a user retention rate of 56% after just six months, it was evident that Padash had found something of real value in the eyes of its audience.
Shifting customer behavior wasn’t easy. “It was challenging to switch users from established apps with thousands of offers, but we provided a simpler and more cost-effective solution,” Jamal explains. Gaining an advantage over their competition required more than just a good product; it demanded an unwavering focus on simplicity, efficiency, and value—qualities that set Padash apart in a crowded market.
As Padash continues to optimize its platform and scale its operations, the team remains focused on one core goal: connecting customers with local stores for quick, reliable deliveries. The resilience and strategic pivot that brought Padash to this point isa testament to the team's ability to adapt, learn, and most importantly, listen to what the market truly needs.
Expanding in a Complex Market
After gaining initial traction in Erbil, Padash team held still to their entrepreneurial mindset that focuses on scalability and continued progress. Just like their past experience with Kurdivia, success alone wasn’t satisfactory, they started considering expansion.
To truly scale, they needed to make their app available in other cities across Iraq. But with the complexity of the market and limited investor confidence, this wasn’t going to be an easy feat. “The Iraqi and Kurdish market requires a tailored approach. You typically need around $200,000 to start, and it's common to face initial losses,” says Ahmed Jamal. In a market where traditional methods didn't apply, a different strategy was essential.
With limited options and a clear need for a more strategic approach, Ahmed turned to his connections to seek out funding. "Finding someone who understands the market and is capable of tackling these challenges is crucial for success," he explains.
Through persistence and valuable relationships, Padash secured $125,000 in pre-seed funding from an undisclosed angel investor—an essential step in their journey. This critical investment would enable Padash to expand its operations throughout Erbil and enhance its mobile application, setting the stage for their plan to bring instant delivery services to even larger segments of the city.
For Padash, this was more than just a financial win—it was proof that persistence, adaptability, and a deep understanding of the local market could overcome the complex challenges they faced in securing funding.
The Gateway to New Opportunities
After securing their first round of funding, Padash started attracting venture capital and gaining broader recognition in the startup ecosystem. This strategic move proved instrumental in getting selected for the Growth Track of StartMashreq Program.
Jamal further emphasized the transformative effect of the program: “StartMashreq opened the gate to exploring new markets and meeting investors inside and outside Iraq. What used to be difficult—prioritizing new markets, meeting investors, and knowing how to communicate effectively with them—has now become second nature."
Padash's participation in numerous events with StartMashreq, including several UAE and KSA Investor Mixers by StartMashreq X Flat6labs, LEAP, GITEX, and Corporate networking event in Riyadh, proved invaluable. The exposure and connections made through these events enabled Padash to refine their pitch and expand their network.
When Padash secured their first funding, it held particular significance as it marked the seventh investment in the Iraqi market in a Kurdish startup in 2024, nearly doubling the number of investments made in the previous year. The increased investor interest in the Iraqi startup ecosystem highlights the growing confidence in innovative solutions tailored to local market needs, positioning Padash for continued success and expansion.
Padash stands as a testament to the power of resilience, adaptability, and the courage to pivot when necessary. It is not merely an instant delivery service but the culmination of hard-earned insights and strategic decisions.