Lahore-based startup PostEx, a supplier of courier and financing to e-commerce organizations, successfully closed one of Pakistan’s biggest early-stage investments to assist with its expansion plans. The startup has raised $8.6 million in seed funding through multiple tranches, as per its founder Muhammad Omer Khan.
Pakistani Startups has Lured in More than $300 Million Investments in 2021
The most recent seed funding round was directed by Global Founders Capital, and further included first-time investments by FJ Labs and RTP Global in Pakistan. Furthermore, more than $300 million investment has flowed into Pakistan’s nascent technology division in 2021, more than in the previous six years combined.
Moreover, PostEx founder, Muhammad Omar Khan moved back to Pakistan from Dubai to begin the venture after finding more than 90 percent of Pakistan’s online shopping was conducted with post-delivery cash payments instead of electronic transactions, resulting in the funds of companies being held up for weeks. Lahore-based startup, PostEx, which began in April, assists e-commerce businesses to solve operation capital difficulties by giving them cash before making deliveries and providing them finance to manage their businesses.
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“The space has been underserved by traditional financial providers. Banks would not loan to e-commerce platforms because they don’t have anything to put as collateral,” Khan said in an interview. “We know their business. We understand that they’re growing very fast. So why not just use that as collateral?”
PostEx will Use the Raised Seed Funding for Expansion Plans
In addition to this, the Lahore-based startup, PostEx will use the raised seed funding to expand into 15 to 20 more cities in Pakistan, grow its workforce and launch more fintech products, he stated. Other investors included MSA Capital, VentureSouq, Alma Capital, and Zayn Capital.
Pakistan’s e-commerce business has attracted the most investment in the recent seed funding rush. The majority of the population still hasn’t shifted to online shopping, giving room for the division to grow and transactions to reach $10 billion before 2025 from about $6 billion now, Khan estimates. The held-up cash “was slowing growth down for e-commerce companies,” stated Khan. “We’re trying to build a solution and help them grow.”
Source: Bloomberg
