Your free debit card & digital wallet to shop online, send money to anyone, pay bills and get free cash withdrawals at any ATM in Pakistan
SadaPay obtained a license for full-fledged operations, which would allow it to add millions of new customers, and secured extra capital to become the most well-funded fintech company in Pakistan.
According to the company’s CEO, Brandon Timinsky, the Islamabad-based business raised $10.7 million in a seed extension deal. The fundraising news comes one day after the central bank granted permission for the company to offer financial services via its smartphone app.
South Asian investors are keen to fund entrepreneurs in the world’s fifth-largest unexplored market. According to the World Bank, Pakistan has the third-largest unbanked population. Timinsky saw opportunities in Pakistan: a large number of young people with smartphones, strong cellular-broadband penetration, sluggish incumbent banks, and substantial governmental reform to assist digitalization.
After an earlier firm in the United States was bought, Timinsky, a 31-year-old American entrepreneur, traveled to Asia to look for fresh prospects. On Monday, the State Bank of Pakistan issued the fintech with an Electronic Money Institution (EMI) license, which allows it to operate with a limited number of customers.
In contrast to conventional banks, SadaPay provides three free cash withdrawals each month, an around-the-clock in-app chat service, and a two-minute account opening.
Digital payments have increased in Pakistan throughout the epidemic, although barely 1% of over $4 trillion worth of transactions are done thus.
Last year, research from London-based fintech startup Boku Inc. predicted that SadaPay will become the fastest-growing mobile wallet in the world between 2017 and 2025. Careem Inc., a subsidiary of Uber, has also opted to invest $50 million in the nation and get a license to operate in the same way.
However, the startup plans to more than double its employee headcount to over 250 people by the end of the year.