Business Desk 
Sep 23, 2024
Qist Bazaar, Pakistan’s Buy Now Pay Later (BNPL) fintech startup, unveiled that it has secured $3.2 million US dollars in its Series A funding round.
The round was supervised by Indus Valley Capital, with participation from Gobi Partners holding $1.6 billion in assets under management (AUM). Bank Alfalah, has already invested in Qist Bazaar, leading the seed round.
This landmark transaction labels the first time an international Valley Capital (VC) has teamed up with a Pakistani commercial bank to take an equity stake in a BNPL fintech, notifying a major moment for Pakistan’s rapidly evolving consumer financing space.
Qist Bazaar offers installment-based payment solutions to unbanked and underbanked segments of the population. In just three years, the platform has laid out over 55,000 product-based loans amounting to $12 million, allowing Pakistanis from all walks of life to purchase essential goods such as mobile phones and home appliances through affordable monthly payments.
For every Pakistani, who adopted a simple eligibility criterion, Qist Bazaar has allowed underserved groups including domestic workers, rickshaw drivers, students, and micro-entrepreneurs to access installment-based financing.
Moreover, the company has unveiled a hybrid scoring model that influences traditional and alternative methods to assess creditworthiness, making it simpler for unbanked consumers to participate in the formal financial system.
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Qist Bazaar Chief Executive Officer (CEO) and Co-founder Arif Lakhani stated: “At Qist Bazaar, we are committed to bringing the fundamental needs of Pakistanis within their reach. Home essentials like ceiling fans and water dispensers are necessities, not luxuries, yet many cannot afford them. With the support of our investors, we offer flexible payment plans, making these essential items more accessible to everyone.”
Indus Valley Capital Founder and Managing Partner Aatif Awan said: “We see enormous potential in Qist Bazaar’s ability to fundamentally reshape how consumer financing is done in Pakistan, similar to what Bajaj Finance did for India.”
In addition, Naiel Ikram, General Partner for Gobi Partners’ Pakistan-focused fund added: “What stood out to us about Qist Bazaar is how effectively they use technology to drive operational efficiencies while simultaneously leveraging it for sustainable, high growth.”
With the recent Series A round, Qist Bazaar will increase its growth by extending its product portfolio, improving its technology infrastructure, and scaling operations across Pakistan.
Qist Bazaar is set to establish its presence in Islamabad, Sukkur, Faisalabad, and Multan, and further increase capacity in Karachi and Lahore. Moreover, new product categories, like solar power generators for small households, are being introduced.
