Pakistan’s e-commerce sector is set to hit $12 billion by 2025 as adoption and growth scale. In propelling this growth, PostEx has completed the acquisition of Call Courier, a logistics service provider, to expand its logistics offering, making it the largest e-commerce service provider in the country.
AUC Law, Salahuddin, Saif & Aslam Co., and MHBWHB Law Associates were the legal advisors for the transaction. This transaction brings together PostEx’s upfront payments, revenue-based financing, and technology with Call Courier’s nationwide logistics infrastructure.
Following the transaction, PostEx will now service 1.3 million users with over 8,000 merchants across 500 cities in Pakistan, on track to becoming the largest fintech in Pakistan with a monthly loan book crossing $12 million.
PostEx becomes the first company in the region to provide receivables factoring and logistics service that pays invoice values upfront to e-commerce companies, helping e-commerce sellers and SMEs to thrive, grow, and take full advantage of every opportunity that comes their way. PostEx is backed by leading investors that include Zayn, MSA, GFC, RTP, FJ Labs, Shorooq, VSQ, and others who have helped raised an $8.6 million seed round – one of the largest for a Pakistani startup.
Call Courier will be a wholly owned subsidiary under the group name. PostEx welcomes Jawad Mirza, founder and CEO of Call Courier to its Board of Directors who will continue to play an integral role in the business while leading the logistics business.
Omer Khan, the founder & CEO of PostEx, commented,
Banks just don’t lend enough to businesses leaving so many of them struggling to maintain their working capital in light of inadequate cash flows. Cash on delivery, while being a problem for such businesses, is very much a reality of the Pakistani ecosystem and is not going away any time soon”.
He added,
The concept behind PostEx was to facilitate all players in the e-commerce sector struggling to operate and expand in light of the restrictions around access to capital and inefficiencies of logistics. The acquisition of Call Courier enables us to increase our reach and benefit from the great business and team Jawad Mirza has managed to grow over the years”.
Call Courier’s strong presence in Pakistan complements PostEx’s vision and nationwide footprint. This strategic decision brings PostEx’s total presence to over 500 cities, serving up to 1.3 million people monthly across Pakistan as the transaction enables both companies to leverage each other’s technological and operational expertise.
Jawad Mirza, the founder & CEO of Call Courier, commented,
“Having more than two decades’ worth of experience in the logistics and last-mile delivery industry has given us an understanding of not only bulk mail but also e-commerce, cash on delivery, and the needs of the sector. With this acquisition, it is time for us to venture into new horizons, accept new challenges, and continue to grow”.
Mirza further mentioned,
“Call courier network joining together with PostEx’s fintech capabilities will enable us to provide quality deliveries across Pakistan along with financial support to the sector. It gives me immense pleasure to serve existing and new customers and provide a one-window solution for their needs”.
Over 90 percent of e-commerce transactions are completed in cash, which represents almost $6.5 billion. The majority of the consumers who shop online in Pakistan pay using the cash-on-delivery payment method and the payment cycles for such orders range between a week to a month which creates cash flow issues for online sellers.
PostEx is solving these challenges with its fintech and logistics platform. In addition to cash-on-delivery, the company also offers Revenue Based Financing to provide easy access to capital, making it the first and last source of non-dilutive financing for e-commerce.
