First-Ever Equity Partnership Between International VCs and a Leading PakistaniCommercial Bank in a BNPL Fintech
Karachi, Pakistan – 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 byIndus Valley Capital, with participation fromGobi 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, signaling a significant moment for Pakistan’s rapidly evolving consumer financing space.
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 just 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 such as mobile phones and home appliances through affordable monthly payments.
A Game-Changer in Financial Inclusion
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 already banking at established institutions. By adopting a simple eligibility criterion—“Every Pakistani”—Qist Bazaar has enabled underserved groups such as domestic workers, rickshaw drivers, students, and micro-entrepreneurs to access installment-based financing. The company has also introduced a hybrid scoring model that leverages both traditional and alternative methods to assess creditworthiness, making it easier for unbanked consumers to participate in the formal financial system.
Arif Lakhani, Co-founder and CEO at Qist Bazaar, shared, “At Qist Bazaar, we are committed to bringing the fundamental needs of Pakistanis within their reach. Home essentials like ceiling fans and water dispensers are necessities, not luxuries, yet many cannot afford them. With the support of our investors, we offer flexible payment plans, making these essential items more accessible to everyone.”
Strategic Backing from Industry Leaders
Qist Bazaar has benefitted from an early equity partnership with Bank Alfalah, which led their seed round. As part of this strategic collaboration, Qist Bazaar will be getting access to debt financing from some of Pakistan’s leading financial institutions, further enhancing its capacity 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.”
EBITDA-Positive from Day One
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 forGobi 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.”
Future Plans for Expansion
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.
What do you think of the story? Share your thoughts and stay tuned for more latest news on Gazette Now
