Boxy, an Iraq-based logistics aggregator, has secured $1.5 million in pre-seed funding from venture capital firm EQIQ, marking the startup’s emergence from stealth mode. The investment represents part of EQIQ’s broader strategy to build digital infrastructure across Iraq’s technology sector.
Founded in 2024 by CEO Ahmed Baqer and CTO Mehrshad Pezeshk, Boxy operates as an AI-powered platform that consolidates Iraq’s fragmented delivery network. The company connects merchants with over 1,500 last-mile couriers through a single intelligent shipping interface, providing real-time optimization for delivery options.
Addressing Market Fragmentation
Iraq’s logistics sector faces significant fragmentation, with numerous independent courier services operating without centralized coordination. Boxy’s platform addresses this challenge by layering an AI-matching engine over the existing network of delivery providers. The system routes shipments to optimal couriers based on data-driven analysis that connects merchant requirements with courier performance metrics.
“Iraq needs a one-stop-shop logistics platform. Boxy helps merchants find the best shipping option per order using real-time data, eliminating the risk of relying on a single carrier” ~ Ahmed Baqer, Boxy’s co-founder and CEO.
The platform reduces merchant onboarding time from weeks to hours, eliminating the need for businesses to manage multiple dashboards, print various shipping labels, or negotiate separately with different courier services.
Early Traction and Growth Metrics
Since launching in October 2024, Boxy has demonstrated what the company describes as early product-market fit, achieving consecutive high double-digit growth. The startup experienced a 100% increase in merchant adoption during its most recent month of operation.
The company plans to integrate with leading courier networks across Baghdad and major provincial cities, using the fresh capital to develop proprietary technology and expand operations throughout Iraq.
Experienced Leadership Team
Boxy’s founding team brings substantial industry experience to the venture. CEO Ahmed Baqer has over a decade of experience scaling operationally intensive startups, including previous roles at Careem Iraq and Northladder. CTO Mehrshad Pezeshk contributes more than 15 years of experience building and exiting technology-driven logistics ventures across the Middle East and North America.
“There’s a myth that Iraq’s last-mile market is unsolvable. With smart technology and the right infrastructure, we’re proving otherwise” ~ Mehrshad Pezeshk, CTO and co-founder.
EQIQ’s Venture Building Approach
EQIQ distinguishes itself from traditional venture capital firms through its venture-building methodology. The firm’s founding partners have invested over $500 million in technology ventures, generating returns exceeding 3.3x. Rather than simply providing capital, EQIQ operates as a co-founder, offering strategic capital injection alongside operational and structural support.
“Logistics is the backbone of the daily operations of the tech ecosystem. By pairing our resources and networks with exceptional founders with 25+ years of sector expertise, we’ve built a venture designed to reshape how parcels move across Iraq and, soon, beyond.” ~ said Mohamed Al-Hakim, Founding Partner at EQIQ.
The partnership leverages EQIQ’s Abu Dhabi Global Market headquarters and extensive network to support Boxy’s expansion plans. EQIQ views logistics as a foundational element in building a comprehensive digital infrastructure that encompasses fintech, logistics, and e-commerce capabilities.
Market Context and Future Outlook
Iraq’s e-commerce sector operates within a predominantly cash-based economy, making reliable logistics infrastructure particularly important for digital commerce growth. Boxy’s platform aims to provide the foundational logistics layer necessary to support broader digital transformation across the country’s business landscape.
The startup’s approach focuses on optimizing existing courier networks rather than creating additional shipping companies. This strategy allows merchants to access improved delivery services without requiring significant infrastructure investments from logistics providers.
As Boxy continues to scale its operations, the company represents EQIQ’s broader vision for developing Iraq’s digital infrastructure through strategic venture building and experienced entrepreneurial leadership.