Karachi-based fintech startup, Abhi Pvt., has raised funding at a $90 million valuation, within a year of starting its business, reported Bloomberg. In the latest Series A round led by Speedinvest, the startup raised $17 million in funding.
The investment marks the venture capital firm’s first investment in Pakistan. Other investors included Global Ventures, VentureSouq, VEF, Sturgeon Capital, Rallycap, FJ Labs, Fatima Gobi, Sarmayacar, and i2i Ventures.
In recent years, Pakistani startups have attracted both local and international investors looking to explore their untapped potential. In 2021 alone, startups were able to raise over $350 million, an amount larger than the past six years collectively.
Abhi offers people an alternative solution to asking their employer, family, or friends for cash until their next salary to help make ends meet. The company also gives small and medium-sized businesses (SMBs) financing solutions for their working capital needs.
Chief Executive Officer Abhi, Omair Ansari, stated:
This is the first time you’re able to get this access in the country. As people and smaller companies get this access then it becomes something they want to keep using.
For registered users, the app only takes a few seconds to access funds at a flat 2 percent transaction fee. Once the user’s next paycheck arrives, the funds are deducted automatically.
Since its previous round in November, the company went from mere 200,000 users to a remarkable 650,000 and has registered more than 150 companies. Ansari claims that individuals are now accessing 15 percent to 20 percent of their monthly wage through the app.
Regarding the investment, the Abhi founders remarked:
We are on a mission to financially empower salaried individuals in Pakistan and this is just the beginning! ABHI is looking forward to partnering with more companies to help empower them and their employees with the range of financial wellness products we have to offer.
On the latest investment, General Partner at Speedinvest, Stefan Klestil, told Bloomberg:
Abhi has the potential to change millions of lives across MENA and South Asia. It’s no wonder they have been able to establish themselves as one of the fastest-growing Pakistani startups.
