PostEx, a Pakistan-based courier and e-commerce financing startup, completed one of the country’s largest early-stage funding rounds of $7.1 million, bringing its total capital to $8.6 million to help with its expansion aspirations.
Pakistan’s startup ecosystem is having a breakthrough year. Pakistan is the world’s fifth-largest country. In 2021, more than $300 million was invested in Pakistan’s fledgling technology sector, more than in the preceding six years combined.
The startup assists e-commerce enterprises in resolving working capital issues by offering cash before delivery and financing to help them manage their businesses.
“Traditional financial services have been underserved in this market.” Banks would not lend to e-commerce platforms because they lack collateral. We are familiar with their industry. We understand that they are rapidly expanding. So why not utilize that as a form of collateral? The e-commerce enterprises’ growth was being slowed by the held-up cash, so we’re working on a solution to assist them to flourish.” M Omer Khan, the company’s founder, stated in an interview.
The startup intends to expand its network into 15-20 additional Pakistani cities, increase the workforce, and introduce other fintech products. – Khan concluded
In the recent capital boom, Pakistan’s e-commerce business has attracted the greatest investment. Khan predicts that the bulk of the population has yet to adopt online shopping, leaving the potential for the sector to expand and transactions to reach $10 billion by 2025, up from roughly $6 billion presently.
News Source: Bloomberg
Image Credit: PostEx