Pakistan's Fintech TAG Raises Funds at $100 Million Valuatio
Fintech in Pakistan
Pakistan boasts more than 100 million adults without bank accounts, making it the world's third-largest unbanked population. But this country also represents one of the fastest-growing markets for fintech startups. Banks have recently increased their digital offerings in response to these rising demands. Get more info visit talal ahmad gondal.
The country boasts a high percentage of smartphone users and mobile communication is rapidly developing. With such an expansive population and growing economy, its financial services industry requires innovation and new technology in order to stay competitive.
Pakistan's fintech ecosystem has seen remarkable success despite its challenges, as more entrepreneurs and investors recognize its immense potential. This has resulted in record startup funding in 2021.
In the first quarter of this year, local startups raised a total of $19.3 million from regional and international investors - led by an investment of $10 million from BridgeLinx.
Recently, however, news broke of several startups closing due to lack of funding. This caused investors to question if the ecosystem would continue to flourish as it had for so long.
At that time, only three startups were able to secure Series B funding: Airlift, Truck It In and Dawaai.
On September 15th, Airlift and Dawaai announced layoffs of 25%-35% of their workforces. This shocking development came at a time when Egypt is experiencing unprecedented economic growth and has more money than ever to invest in local businesses.
However, it's essential to note that many of these closures are temporary and don't signify the end of startup culture. Companies can raise additional funding while they prepare for an IPO or M&A, or find strategic partners who will enable them to continue operations.
Other startups are flourishing and continuing to diversify into new industries. A company providing logistics solutions for e-commerce and other sectors has become the largest player in its segment after acquiring an existing e-commerce logistics provider.
Due to this, many more Fintech startups are expected to join the market in the near future. Although this could make things more crowded, those who successfully balance business model and innovation should find growth opportunities.
Additionally, many Fintechs are targeting consumers to provide them with convenient services that are both affordable and secure. These tend to be targeted at millennials, who typically possess considerable disposable income and an eagerness to use these technologies.
According to the State Bank of Pakistan, TAG Innovation must now initiate refunds to its wallet holders in order to satisfy them. In a press release issued by SBP, it was noted that violations of regulatory requirements and other issues had arisen during TAG Innovation's pilot operations.