Karachi, Pakistan – September 24, 2024 – Qist Bazaar, Pakistan’s leading Buy Now Pay Later (BNPL) fintech platform, has raised $3.2 million in its Series A funding round, led by Indus Valley Capital. Gobi Partners, a prominent Asia-focused venture capital firm managing $1.6 billion in assets, also participated in the round. Bank Alfalah, one of Pakistan’s largest commercial banks and the lead investor in Qist Bazaar’s seed round, continued its support. For the first time, an international venture capital firm and a major Pakistani bank have taken an equity stake in a BNPL fintech.
Qist Bazaar, licensed by the Securities and Exchange Commission of Pakistan (SECP) as a Non-bank Financial Company (NBFC), focuses on providing installment-based payment solutions for Pakistan’s unbanked and underbanked populations. Over the past three years, the company has disbursed more than 55,000 product-based loans worth $12 million, helping consumers across Pakistan afford essential items like mobile phones and home appliances through easy, affordable monthly payments.
What sets Qist Bazaar apart is its inclusive approach. The platform serves a wide range of customers, from individuals with no formal financial history to those with established banking relationships. Qist Bazaar’s simple eligibility requirement—”Every Pakistani”—has empowered underserved groups, such as domestic workers, rickshaw drivers, students, and micro-entrepreneurs, by providing them with access to much-needed financing. Its hybrid scoring model, which blends traditional and alternative credit assessments, further enhances accessibility for unbanked consumers.
Arif Lakhani, Co-founder and CEO of Qist Bazaar, emphasized the company’s commitment to addressing basic needs:
“At Qist Bazaar, we are dedicated to making essential goods financially accessible for Pakistanis. Items like home appliances and mobile phones are necessities, not luxuries, yet many people struggle to afford them. Thanks to our investors’ support, we’re able to offer flexible payment plans that make these necessities attainable.”
Qist Bazaar’s strong partnership with Bank Alfalah, which led the seed round, continues to deliver significant benefits. This collaboration is expected to provide Qist Bazaar with substantial debt financing from top financial institutions, strengthening its ability to serve customers who have limited or no access to formal credit.
Indus Valley Capital, the lead investor for the Series A round, has backed several successful Pakistani startups, including Bazaar, Maqsad, BridgeLinx, and Farmdar.
Aatif Awan, Founder and Managing Partner at Indus Valley Capital, highlighted Qist Bazaar’s transformative potential:
“We believe Qist Bazaar has the potential to reshape consumer financing in Pakistan, similar to what Bajaj Finance has achieved in India. The most exciting aspect is not just the market opportunity, but the tangible impact Qist Bazaar can have on millions of Pakistanis’ daily lives.”
Unlike many high-growth fintech startups, Qist Bazaar has maintained a positive EBITDA since its inception, thanks to its strong unit economics and focus on sustainable growth. This disciplined approach, combined with a rapidly expanding customer base and low delinquency rate, positions Qist Bazaar as a leader in Pakistan’s BNPL sector.
Naiel Ikram, General Partner at Gobi Partners, praised Qist Bazaar’s innovative use of technology to drive operational efficiency and growth:
“Qist Bazaar’s tech-driven approach to streamlining operations while enabling rapid, sustainable growth impressed us. The founders’ deep expertise in the BNPL space and their understanding of customer behavior mirrors what we’ve seen in some of the most successful startups we’ve backed across Asia. With a clear path to scale and a focus on underserved users, Qist Bazaar is poised to replicate the success stories we’ve witnessed across the region.”
With the fresh infusion of capital from the Series A round, Qist Bazaar plans to accelerate its growth. The company will expand its product offerings, enhance its technology infrastructure, and scale its operations across Pakistan. It aims to establish a presence in key cities like Islamabad, Sukkur, Faisalabad, and Multan, while strengthening its operations in Karachi and Lahore. Additionally, Qist Bazaar is preparing to introduce new product categories, such as solar power generators for small households.
To further extend its reach, Qist Bazaar has launched a dealer network across various product categories, allowing partners to offer installment-based payment plans. The company has also initiated B2B2C efforts, securing partnerships with major players in the textile sector to expand its customer base.
