SadaPay, a Pakistani fintech Startup, raised additional funds after receiving approval for full-fledged operations, allowing it to attract millions of new customers.
According to Chief Executive Officer Brandon Timinsky, the Islamabad-based business received $10.7 million in a seed-extension round. The fundraising announcement comes only one day after the central bank granted it permission to provide financial services via its smartphone app.
The world’s fifth-largest country is seeing a surge of investors willing to fund entrepreneurs, making it one of the remaining huge untouched marketplaces. According to the World Bank, Pakistan has the world’s third-largest unbanked population, and a flurry of fintech is sprouting.
The opportunity lay in “a huge population of young people with smartphones, high cellular-broadband penetration, sleepy incumbent banks, and massive policy reform by the government to support digitization,” Timinsky said when he first visited Pakistan.
After a prior firm was bought in the United States, Timinsky, a 31-year-old American entrepreneur, traveled to Asia to explore fresh chances. Before receiving an Electronic Money Institution license from the State Bank of Pakistan on Monday, the fintech began functioning in a test mode that limited customers to 10,000.
Sadapay, unlike traditional banks, allows consumers to make three free cash withdrawals each month, has a 24-hour in-app chat service, and can establish an account in two minutes.
While digital payments have increased in Pakistan as a result of the epidemic, just 1% of the almost $4 trillion in payments are performed digitally. According to data published last year by London-based fintech startup Boku Inc., SadaPay is expected to be the world’s fastest-growing mobile wallet in the five years leading up to 2025. Careem Inc., a subsidiary of Uber, has chosen to invest $50 million in the nation and get a comparable license.
Recharge Capital, Kingsway Capital, and Raptor Group, which had previously invested in SadaPay, have increased their stake. By the end of the year, the firm expects to have more than doubled its workforce to over 250 workers.