Islamabad, Sep 25: Qist Bazaar, Pakistan’s leading Buy Now Pay Later (BNPL) fintech startup, has successfully raised $3.2 million in its Series A funding round.
This round was led by Indus Valley Capital, with contributions from Gobi Partners, a notable Asia-focused venture capital firm with $1.6 billion in assets under management. Bank Alfalah, one of Pakistan’s largest commercial banks, had previously led Qist Bazaar’s seed funding round.
This funding marks a pivotal moment for Pakistan’s consumer financing sector, as it represents the first collaboration between an international venture capital firm and a major Pakistani commercial bank to invest in a BNPL fintech.
Innovative Financing Solutions for All
Licensed by the Securities and Exchange Commission of Pakistan (SECP) as a Non-bank Financial Company (NBFC), Qist Bazaar offers installment-based payment solutions aimed at unbanked and underbanked populations. In just three years, the platform has disbursed over 55,000 product-based loans totaling $12 million, allowing Pakistanis to purchase essential goods such as mobile phones and home appliances through manageable monthly payments.
The startup’s inclusive approach, epitomized by its eligibility criterion of “Every Pakistani,” enables access to financing for a diverse customer base, including domestic workers, rickshaw drivers, students, and micro-entrepreneurs.
Qist Bazaar utilizes a hybrid scoring model that combines traditional and alternative credit assessment methods, facilitating participation in the formal financial system for previously excluded consumers.
Strategic Partnerships for Growth
With strong backing from Bank Alfalah, Qist Bazaar has gained access to debt financing from leading financial institutions, enhancing its capacity to serve customers with limited or no access to credit. Indus Valley Capital’s Aatif Awan highlighted the transformative potential of Qist Bazaar, likening it to Bajaj Finance’s impact in India, and emphasized the opportunity to positively influence millions of lives in Pakistan.
Sustainable and Profitable Growth
Notably, Qist Bazaar has been EBITDA-positive from day one, showcasing strong unit economics and a commitment to sustainable growth.
The company’s disciplined approach, coupled with a growing customer base and low delinquency rates, positions it as a formidable player in Pakistan’s BNPL market. Gobi Partners’ Naiel Ikram noted the effective use of technology by Qist Bazaar to drive operational efficiency and foster sustainable growth.
Plans for Expansion and New Offerings
With the recent Series A funding, Qist Bazaar aims to accelerate its growth by expanding its product offerings, enhancing its technology infrastructure, and scaling operations across Pakistan.
The company plans to establish a presence in cities like Islamabad, Sukkur, Faisalabad, and Multan while increasing capacity in Karachi and Lahore.
Additionally, Qist Bazaar is set to introduce new product categories, including solar power generators for small households, and has launched a dealer network to market its payment plans.
The company is also exploring B2B2C initiatives, achieving early success with major textile partners, paving the way for broader reach and impact in the market.
