Karachi, Pakistan--(Newsfile Corp. - September 24, 2024) - Qist Bazaar, Pakistan's leading Buy Now Pay Later (BNPL) fintech startup, announced today that it has secured US$3.2 million in its Series A funding round. The round was led by Indus Valley Capital, with participation from Gobi Partners, a prominent Asia-focused venture capital firm with US$1.6 billion in assets under management (AUM). Bank Alfalah, one of Pakistan's largest commercial banks has already invested in Qist Bazaar, leading the seed round. This milestone transaction marks the first time an international VC has teamed up with a leading Pakistani commercial bank to take an equity stake in a BNPL fintech.
Qist Bazaar.pk
Qist Bazaar, licensed by the Securities and Exchange Commission of Pakistan (SECP) as a Non-bank Financial Company (NBFC), provides installment-based payment solutions to unbanked and underbanked segments of the population. In three years, the platform has disbursed over 55,000 product-based loans amounting to $12 million, enabling Pakistanis from all walks of life to purchase essential goods like mobile phones and home appliances through affordable monthly payments.
Qist Bazaar's success lies in its inclusive approach: the platform caters to a wide range of customers, from those with no financial history to individuals banking at established institutions. By adopting a simple eligibility criterion-"Every Pakistani"-Qist Bazaar has enabled underserved groups like domestic workers, rickshaw drivers, students, and micro-entrepreneurs to access installment-based financing. The company also introduced a hybrid scoring model that leverages traditional and alternative methods to assess creditworthiness, making it easier for unbanked consumers to participate.
Arif Lakhani, Co-founder and CEO at Qist Bazaar, shared, "At Qist Bazaar, we are committed to bringing fundamental needs of Pakistanis within their reach. Home essentials are necessities, not luxuries, yet many cannot afford them. With our investors support, we offer flexible payment plans, making these essential items accessible to everyone."
Qist Bazaar has benefitted from an early equity partnership with Bank Alfalah, which led their seed round. As part of this collaboration, Qist Bazaar will receive debt financing from some of Pakistan's leading financial institutions, amplifying the ability to serve customers who have limited or no access to formal credit.
Indus Valley Capital, the lead for the series A round, is a prominent investor known for being the first VC to back several category-leading Pakistani startups including Bazaar, Maqsad, BridgeLinx and Farmdar.
Aatif Awan, Founder and Managing Partner at Indus Valley Capital, shared, "We see enormous potential in Qist Bazaar's ability to fundamentally reshape how consumer financing is done in Pakistan, similar to what Bajaj Finance did for India. What excites us here is not just the market opportunity but the impact that Qist Bazaar can have on the everyday lives of millions of Pakistanis."
Unlike many high-growth fintech startups, Qist Bazaar has been EBITDA-positive since day one, reflecting the company's strong unit economics and focus on sustainable growth. This disciplined approach, combined with a growing customer base and a low delinquency rate, underscores Qist Bazaar's potential to become a leading player in Pakistan's BNPL market.
Naiel Ikram, General Partner for Gobi Partners' Pakistan-focused fund added, "What stood out to us about Qist Bazaar is how effectively they use technology to drive operational efficiencies while simultaneously leveraging it for sustainable, high growth. The founders' deep experience in the BNPL space, combined with their nuanced understanding of their target customers' behavior, reminds us of some of the most successful founders we've backed across Asia. With a clear path to scale by serving historically underserved users in Pakistan, Qist Bazaar is well-positioned to replicate the growth stories we've witnessed across the region."
With the recent Series A round, Qist Bazaar is poised to accelerate its growth by expanding its product portfolio, enhancing its technology infrastructure, and scaling operations across Pakistan. The company plans to establish a presence in Islamabad, Sukkur, Faisalabad, Multan, and further increase capacity in Karachi and Lahore. Additionally, new product categories, such as solar power generators for small households, are being introduced. To extend its reach, Qist Bazaar has launched a dealer network across various categories, enabling others to market its payment plans. The company has also initiated B2B2C efforts, with early successes in securing major textile partners.
About Qist Bazaar
Founded in 2021, Qist Bazaar is Pakistan's leading Buy Now Pay Later (BNPL) fintech platform. Licensed by the SECP as a Non-bank Financial Institution (NBFi), Qist Bazaar provides installment payment solutions to all Pakistanis, regardless of their financial history. The platform enables customers to purchase essential goods with flexible payment plans, fostering financial inclusion for unbanked and underserved communities.
Contact:
Arif Lakhani
Co-Founder, Qist Bazaar
arif@qistbazaar.pk
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SOURCE: Qist Bazaar
