By 2025, the e-commerce market in Pakistan is anticipated to reach $12 billion as acceptance and growth pick up. To fuel this expansion, PostEx has finalized the acquisition of logistics service provider Call Courier to broaden its logistical offering and establish itself as the biggest e-commerce service provider in the nation.
The transaction’s attorneys were MHBWHB Law Associates, Salahuddin, Saif & Aslam Co., and AUC Law. In this deal, Call Courier’s extensive statewide logistics network is combined with the upfront payments, revenue-based finance, and technology of PostEx.
Following the deal, PostEx will now provide services to 1.3 million consumers and over 8,000 merchants across 500 cities in Pakistan, putting it on course to become the country’s largest fintech with a loan book that exceeds $12 million per month.
PostEx becomes the first business in the region to offer e-commerce enterprises receivables factoring and logistics services that pay invoice values upfront. This enables e-commerce sellers and SMEs to prosper, grow, and take full advantage of every opportunity that comes their way. Zayn, MSA, GFC, RTP, FJ Labs, Shorooq, VSQ, and other notable investors support PostEx, which has raised an $8.6 million seed round, one of the largest for a Pakistani firm.
Under the group name, Call Courier will be an owned subsidiary. Jawad Mirza, the founder, and CEO of Call Courier is now a member of PostEx’s Board of Directors and will continue to play a crucial role in the company while overseeing the logistics sector.
PostEx’s founder and CEO, Omer Khan, said, “Simply put, banks don’t lend enough to businesses, which causes a lot of them to struggle to maintain their working capital due to insufficient cash flows. While problematic for these enterprises, cash on delivery is an integral part of Pakistan’s ecosystem and is not going away any time soon.
He went on to say “The idea behind PostEx was to help all participants in the e-commerce industry who were finding it difficult to function and grow due to access to financial limitations and logistical inefficiencies. With the purchase of Call Courier, we can expand our market and take advantage of the fantastic company and team that Jawad Mirza has built over the years.
The vision and geographic reach of PostEx are complemented by Call Courier’s significant presence in Pakistan. PostEx now has a presence in over 500 locations and can provide services to up to 1.3 million individuals each month across Pakistan thanks to this strategic choice, which also allows both businesses to benefit from one another’s technology and operational know-how.
“Having more than two decades of expertise in the logistics and last-mile delivery industry has given us an understanding of not only bulk mail but also e-commerce, cash on delivery, and the needs of the sector,” said Jawad Mirza, the founder, and CEO of Call Courier. With this acquisition, it is now time for us to explore new areas, take on fresh challenges, and develop further.
“Call courier network combining with PostEx’s fintech expertise would enable us to give excellent deliveries across Pakistan along with financial support for the sector,” Mirza added. Providing a one-stop shop for the needs of both new and existing customers provides me with a great deal of pleasure.
Cash is used in more than 90% of online purchases, amounting to about $6.5 billion. Online retailers experience cash flow challenges because the majority of Pakistani consumers who shop online choose the cash-on-delivery payment option, and the payment cycles for such orders range from one week to one month.
With the help of its financial and logistics platform, PostEx is addressing these issues. The company serves as the first and ultimate source of non-dilutive financing for e-commerce by providing revenue-based financing in addition to cash-on-delivery to provide quick access to finance.