Islamabad, Aug 20: Fintech firm PostEx has revealed that it has raised $7.3 million in pre-series funding. On Tuesday, information on a funding round that gives firms the money they need to expand their businesses was revealed.
Pre-series A funding is intended to help businesses bridge the gap between seed and series A funding by assisting them in improving their product and reaching important milestones prior to a bigger series A round.
In line with the startup’s news release, “The proceeds will help PostEx maintain its market leadership in Pakistan and support an aggressive expansion into the Gulf Cooperation Council (GCC), where PostEx’s services will be available to new markets and customers.”
Leading the investment was the technology-focused global venture capital firm Conjunction Capital, with participation from Dash Ventures, Sanabil500, VSQ, FJ Labs, and Zayn VC. The business claims to have eliminated “conventional barriers and challenges of traditional financing methods” by offering immediate access to funds through the use of a hybrid fintech and logistics approach.
The statement said, “Access to capital is critical for online businesses looking to scale; those with flexible financing partnerships are positioned strategically to take advantage of opportunities as they present themselves, propelling business success.” According to the statement, the US$6 billion e-commerce industry in the nation only makes up 1% to 2% of all retail transactions, compared to a 15% global average.
The funding round comes after “a very successful 18 months” for the business, during which it achieved a number of operational and financial benchmarks, including $21 million in recurring yearly revenue. “While the GCC and Pakistan have a thriving and fast-growing e-commerce landscape, the reality is that legacy financial institutions don’t fulfil the needs of digital entrepreneurs and online businesses,” stated Muhammad Omer Khan, chief executive of PostEx.
According to him, PostEx wants to enable internet sellers by giving them access to the “right capital” so they may expand their enterprises.The company’s investment in PostEx, according to Kirill Kozhevnikov, managing and founding partner at Conjunction Capital, highlighted “the strategic importance of the Saudi Arabian market as a key growth area within the GCC.”
