Shaheer Ahmed
The ecosystem of startups in Pakistan is the center of attention of the local, international, and regional investors. More and more Pakistani startups are coming to the fore, and with their innovative ideas are bagging investments worth millions. Not only this because of the conducive and viable environment in Pakistan, but many international-based startups are also setting up their branches in the country. Recently, a digital lending platform, ZoodPay, entered Pakistan after the acquisition of Pakistan-based fintech Tez Financial Services (Tez).
About Tez Financial Services
The Karachi-based startup Tez was founded in 2017. It was co-founded by Naureen Hyatt and Humza Hussain. It became the first completely digital Non-Bank Microfinance Company (NBMFC) of Pakistan in 2018. Tez aims at promoting financial inclusion by creating a single platform offering services to manage investments, credit, insurance, savings, etc. The startup caters to the under-banked and unbanked population of Pakistan.
About ZoodPay
A BNPL solution Zoodpay headquartered in Switzerland lets the customers defer their payments without having to pay the interest. It currently operates in CIS (Commonwealth of Independent States) and MENA (the Middle East and North Africa) countries. The customers of these regions are offered two payment solutions.
- PAD: Customers can pay for their order 14 days after the order is received too with no interest.
- ZPI: Allows the customers to pay for their orders in 4 installments in 90 days. This is method is also interest-free.
ZoodPay in Pakistan
Recently, ZoodPay has made an entry in Pakistan after acquiring the Pakistani startup Tez Financial services. To date, approximately $50 million has been raised by ZoodPay through its strategic and global ventures with VC Fund Sturgeon Capital (London), and Zain (a telecom entity in MENA). Moreover, ZoodPay has also launched a Series C round. The profits earned from this would help the expansion of ZoodPay in Pakistan.
The co-founders commented: “We are humbled and thrilled by the confidence shown in our business model by larger regional players and look forward to the next level of development for Tez where our learnings in crafting the digital lending journey and managing risk can serve as a foundation for delivering consumer-centric lending solutions at scale while creating credit histories for the masses.”
Upon this acquisition, the Chairman of Tez, Nadeem Hussain said “besides sizable fundraises, acquisitions of local players by international players are taking place. This further validates the global value Pakistani startups are creating. Planet N was one of the first in the market to invest in startups. We are now seeing the first-mover advantage.”
As per the company’s press release, “With a population of over 230 million people, half of whom are young and digitally savvy, over 100 million smartphones and 90 percent internet coverage, Pakistan represents a clear high potential market, with a dire need of formal credit.”
ZoodPay aims to address this problem by using its B2B2C digital-lending solution. ZoodPay’s e-commerce marketplace and Tez’s insights on the local community and the country’s banking practice is expected to bring about a new, credible, and easy payment system.
ZoodPay CEO, Michael Khoi remarked, “We’re confident that by combining ZoodPay’s unique ecosystem and experience operating in frontier markets with Tez’s local know-how, strong team and ecosystem partnerships, we’ll be able to positively impact the life of Pakistani people and empower them by giving them access to easy, affordable and reliable digital financial services.”
This acquisition will position ZoodPay as a primary player in the digital and fintech lending space in Pakistan. Moreover, it will also prove beneficial for the people of Pakistan, providing them with reliable digital financial facilities.
