Asia-focused venture capital firm Gobi Partners has backed the $3.2 million Series A funding for Pakistani buy-now-pay-later (BNPL) fintech startup Qist Bazaar, according to an announcement.
The round, anchored by Pakistan’s Indus Valley Capital, marked the first time that an international venture capital firm has partnered with a Pakistani commercial bank, Bank Alfalah, to take an equity stake in a BNPL fintech startup.
Qist Bazaar, founded in 2021, provides installment payment solutions to all Pakistanis, regardless of their financial history. The platform enables customers to purchase essential goods with flexible payment plans.
The platform has disbursed over 55,000 product-based loans amounting to $12 million, enabling Pakistanis from all walks of life to purchase goods such as mobile phones and home appliances through affordable monthly payments, per the announcement.
Qist Bazaar said its collaboration with Bank Alfalah, which invested in its seed round, will allow it to get access to debt financing from some of Pakistan’s leading financial institutions to further serve customers who have limited or no access to formal credit.
The Series A lead investor, Indus Valley Capital, is known for being the first VC to back several category-leading Pakistani startups including Bazaar, Maqsad, BridgeLinx, and Farmdar.
“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,” said Aatif Awan, founder and managing partner at Indus Valley Capital.
Qist Bazaar said it will use the fresh funds to expand its product portfolio, enhance its technology infrastructure, and scale its operations across Pakistan.
The fintech startup said it will establish a presence in Islamabad, Sukkur, Faisalabad, and Multan and further increase capacity in Karachi and Lahore.
The funding comes about four months after Fatima Gobi Ventures, a joint venture between Pakistani conglomerate Fatima Group and Gobi Partners, announced plans to double down on its investments in early-stage startups in the South Asian country after fully deploying its $20-million maiden fund.
Fatima Gobi Ventures has backed Pakistani startups such as social commerce startup DealCart, fintech company Abhi, consumer e-commerce business PriceOye, and artificial intelligence (AI)-driven consulting platform Intellia.
