Lahore-based PostEx has completed one of Pakistan’s biggest early-stage seed funding rounds of $8.6 million to expand its operations in the country, reported Bloomberg.
PostEx secured the funds through an assortment of tranches. The most recent fundraising round was led by Global Founders Capital and also featured first-time investments from FJ Labs and RTP Global. Other investors included MSA Capital, VentureSouq, Alma Capital, and Zayn Capital.
PostEx, which launched in April, assists e-commerce enterprises with working capital issues by offering cash before delivery and financing to help them run their businesses. The company’s founder, Muhammad Omer Khan, told ProPakistani,
Our focus from the very beginning has been to become the go-to growth platform for merchants looking to realize their potential. We are at the forefront of innovative technology solutions that bridge merchants’ logistics needs with their capital requirements.
In a space that has been underserved by traditional financial providers, PostEx is the differentiator that helps merchants grow faster and more economically with our range of customized financial products.
Omer explained that the new funds would be used to expand the startup’s reach to 15-20 locations in Pakistan, add to its workforce, and launch other and more engaging products for the people’s benefit.
Fabrice Grinda, Founding Partner at FJ Labs, said,
We’re thrilled to partner with Omer and PostEx for our first-ever investment in Pakistan. Pakistan is one of the largest untapped frontier markets going through digital transformation – and financial products that enable local merchants to grow faster will form the backbone of this future. We believe PostEx’s technology and the team have them well-positioned to capitalize on this massive opportunity, and we’re excited to back them on this journey.
Subsequently, Tito Costa, Partner at Global Founders Capital, said, “PostEx offers a unique product to e-commerce players in the Pakistani ecosystem, allowing them to unlock precious capital to accelerate their growth. We are excited to back the team as they build out their suite of financial and fulfillment products.”
In extension, Kirill Kozhevnikov, a Partner with ru-Net, a new fund of the RTP Global family, said:
Very excited to partner with Omer and team-PostEx. They are our first commitment in the region. VC has no geographical boundaries, and we see tremendous potential in emerging markets such as Pakistan, Bangladesh, and MENA. Big and growing market, disruptive business model, and exceptional entrepreneurial talent – our must-haves criteria for portfolio companies – were matched on the 20th minute of the first meeting. Looking forward to building something big together!
In the recent capital boom, Pakistan’s e-commerce landscape has attracted some heavy level of investment rounds. While the bulk of the population has yet to adopt online shopping, companies like PostEx still believe in exploiting potential growth opportunities for the sector to expand and transactions to reach $10 billion by 2025, up from roughly $6 billion presently.