Pakistan-based Buy Now Pay Later platform QisstPay has secured $15 million in seed and pre-seed funding. The round was led by MSA Capital and featured institutional investment participation from Global Founders Capital, Fox Ventures, and First Check Ventures – as well as strategic angel investments from Scalapay co-founders Simone Mancini and Johnny Mitrevski.
The capital, a combination of debt and equity financing, will help the company expand both its services and workforce, ideally boosting its team to more than 100 people by year’s end. QisstPay also believes the funding will accelerate its ability to fund transactions and partnerships with traditional financial institutions in Pakistan, as well as expand its services to neighboring Sri Lanka and Bangladesh.
QisstPay was founded less than a year ago, in November 2020, to solve a very basic problem for consumers in emerging market economies in general and in Pakistan in specific. Many citizens in developing countries do not have the financial means to get approval for credit cards and other forms of consumer financing popular in the West and the more developed economies in Asia. This impact not only their ability to purchase recreational and luxury goods, but also impairs their access to everyday necessities.
As QisstPay co-founder and CEO Jordan Olivas explained: “After moving here to Pakistan, I noticed how badly the people of this country need a financial tool to help them purchase goods and services that they not only want, but actually need.”
QisstPay offers an installment payment service that responds to this problem by enabling consumers to pay for their purchases in four installments without having to pay interest or worry about late fees. Purchases of between 1,500 and 500,000 PKR (approximately $9 to $3,000 USD) are eligible, and consumers can use both debit and credit cards to make their repayments. The company noted that it plans to enable repayment via digital wallet soon.
The low penetration rate of credit cards and the dominance of cash are some of the reasons why QisstPay has caught on. Add to this the high population of young, digitally-savvy people in countries like Pakistan, and it is easy to see why the company has more than 500 retailers in Pakistan using its service. This includes brands such as Samsung, Diesel, Philips, Xiaomi, and Lenovo, as well as the largest Shopify store in the country.
“Over 60% of Pakistan’s population is under the age of 30, which means that the majority of the country is adopting new technologies,” Olivas said. “Yet so many people still believe that Pakistan isn’t ready to adopt a BNPL system. The rapid growth and use of a platform like QisstPay proves otherwise.”
Tim Chen, General Partner at MSA Capital underscored this point. “Pakistan is one of the most often overlooked countries when it comes to fintech investments,” Chen said. “However, it’s also one of the countries with the most potential.”
For more insight into the fintech ecosystem in Pakistan, check out Tracxn’s highlight of ten of the top fintechs in the country, as well as this list from LocalWriter. One of the most comprehensive looks at the fintech industry in Pakistan in recent times is available in the landscape study by Mohsin Termezy, founder and CEO of Finclude, and Hussam Razi, a Monitoring, Evaluation, and Learning Specialist with Karandaaz Pakistan, published this summer.
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Pakistan-based Purchase Now Pay Later platform QisstPay has secured $15 million in seed and pre-seed funding. The spherical was led by MSA Capital and featured institutional funding participation from World Founders Capital, Fox Ventures, and First Verify Ventures – in addition to strategic angel investments from Scalapay co-founders Simone Mancini and Johnny Mitrevski.
The capital, a mix of debt and fairness financing, will assist the corporate develop each its providers and workforce, ideally boosting its workforce to greater than 100 individuals by 12 months’s finish. QisstPay additionally believes the funding will speed up its means to fund transactions and partnerships with conventional monetary establishments in Pakistan, in addition to develop its providers to neighboring Sri Lanka and Bangladesh.
QisstPay was based lower than a 12 months in the past, in November 2020, to unravel a really primary downside for shoppers in rising market economies usually and in Pakistan in particular. Many voters in creating nations shouldn’t have the monetary means to get approval for bank cards and different types of client financing in style within the West and the extra developed economies in Asia. This affect not solely their means to buy leisure and luxurious items, but additionally impairs their entry to on a regular basis requirements.
As QisstPay co-founder and CEO Jordan Olivas defined: “After shifting right here to Pakistan, I observed how badly the individuals of this nation want a monetary instrument to assist them buy items and providers that they not solely need, however really want.”
QisstPay affords an installment cost service that responds to this downside by enabling shoppers to pay for his or her purchases in 4 installments with out having to pay curiosity or fear about late charges. Purchases of between 1,500 and 500,000 PKR (roughly $9 to $3,000 USD) are eligible, and shoppers can use each debit and bank cards to make their repayments. The corporate famous that it plans to allow reimbursement by way of digital pockets quickly.
The low penetration fee of bank cards and the dominance of money are a few of the the reason why QisstPay has caught on. Add to this the excessive inhabitants of younger, digitally-savvy individuals in nations like Pakistan, and it’s simple to see why the corporate has greater than 500 retailers in Pakistan utilizing its service. This consists of manufacturers equivalent to Samsung, Diesel, Philips, Xiaomi, and Lenovo, in addition to the biggest Shopify retailer within the nation.
“Over 60% of Pakistan’s inhabitants is beneath the age of 30, which suggests that almost all of the nation is adopting new applied sciences,” Olivas mentioned. “But so many individuals nonetheless consider that Pakistan isn’t able to undertake a BNPL system. The speedy development and use of a platform like QisstPay proves in any other case.”
Tim Chen, Common Accomplice at MSA Capital underscored this level. “Pakistan is likely one of the most frequently neglected nations in terms of fintech investments,” Chen mentioned. “Nevertheless, it’s additionally one of many nations with probably the most potential.”
For extra perception into the fintech ecosystem in Pakistan, try Tracxn’s spotlight of ten of the highest fintechs within the nation, in addition to this checklist from LocalWriter. One of the vital complete appears on the fintech trade in Pakistan in latest instances is offered within the panorama research by Mohsin Termezy, founder and CEO of Finclude, and Hussam Razi, a Monitoring, Analysis, and Studying Specialist with Karandaaz Pakistan, printed this summer time.
Right here is our have a look at fintech innovation world wide.
Center East and Northern Africa
Central and Southern Asia
Latin America and the Caribbean
Central and Japanese Europe
Picture by AaDil from Pexels