Qist Bazaar, Pakistan’s leading Buy Now Pay Later (BNPL) fintech startup, has successfully raised $3.2 million in its Series A funding round. The round was led by Indus Valley Capital, with significant participation from Gobi Partners, a venture capital firm managing over $1.6 billion in assets. Bank Alfalah, one of the largest commercial banks in Pakistan, also participated in the round, continuing its investment after leading Qist Bazaar’s seed round.
This Series A funding marks a pivotal moment for Qist Bazaar and the country’s growing consumer finance sector, as it is the first time an international venture capital firm has teamed up with a major Pakistani commercial bank to take equity in a BNPL fintech. The investment underscores the potential of Pakistan’s unbanked and underbanked populations, who are largely underserved by traditional financial services.
Pioneering Financial Inclusion in Pakistan
Qist Bazaar is licensed by the Securities and Exchange Commission of Pakistan (SECP) as a Non-Banking Financial Company (NBFC). It provides installment-based payment solutions that make essential goods accessible to individuals who would otherwise struggle to afford them. In its three years of operation, the platform has disbursed over 55,000 product-based loans worth $12 million, catering to people across Pakistan, from urban areas to rural communities.
The company’s inclusive financing model is what sets it apart. Qist Bazaar caters to a broad spectrum of customers, including those with no financial history and those who are already banked but need additional flexibility. The company’s simple eligibility criterion—”Every Pakistani”—ensures that marginalized groups, such as domestic workers, rickshaw drivers, students, and micro-entrepreneurs, can participate in the formal financial system.
The platform uses a hybrid scoring model that combines traditional credit assessment methods with alternative data points to evaluate a customer’s creditworthiness. This inclusive approach allows more people to benefit from installment-based financing and gives them access to products like mobile phones, home appliances, and even solar generators, all through affordable monthly payments.
Strategic Collaborations Driving Growth
Qist Bazaar’s strategic equity partnership with Bank Alfalah, one of its early investors, has been instrumental in its growth. This collaboration not only provided equity funding but also paved the way for Qist Bazaar to access debt financing from leading financial institutions in Pakistan. As a result, the startup has been able to scale its operations and enhance its offerings.
Indus Valley Capital, which led the Series A round, has a history of backing successful Pakistani startups, such as Bazaar, Maqsad, BridgeLinx, and Farmdar. Aatif Awan, Founder and Managing Partner of Indus Valley Capital, believes that Qist Bazaar is poised to reshape consumer financing in Pakistan in much the same way that Bajaj Finance transformed the industry in India. “What excites us here is not just the market opportunity but the impact Qist Bazaar can have on the everyday lives of millions of Pakistanis,” said Awan.
Gobi Partners, which also participated in the funding round, is known for its investments in Asia’s high-growth tech companies. Naiel Ikram, General Partner for Gobi Partners’ Pakistan-focused fund, remarked, “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.”
Qist Bazaar’s Business Model and Sustainability
Qist Bazaar has been EBITDA-positive since its inception, a rare accomplishment for fintech startups, especially in the BNPL space. This is a testament to the company’s focus on sustainable growth and strong unit economics. Qist Bazaar’s disciplined approach has allowed it to maintain a low delinquency rate, while its growing customer base has fueled its rapid expansion.
The company’s unique model leverages technology not only to streamline operations but also to drive customer acquisition and satisfaction. Through its hybrid credit-scoring model and flexible payment plans, Qist Bazaar is helping to bring essential goods within reach of more Pakistanis, regardless of their financial background. This approach has made the platform a crucial player in the country’s burgeoning fintech ecosystem.
Expanding Footprint and Future Plans
With the $3.2 million raised in its Series A round, Qist Bazaar is well-positioned to scale its operations and expand its product offerings. The company plans to increase its footprint across major cities, including Islamabad, Sukkur, Faisalabad, Multan, and larger capacities in Karachi and Lahore. Additionally, it plans to introduce new product categories like solar power generators for small households, further broadening its range of offerings for underbanked consumers.
Qist Bazaar has also launched a dealer network that allows third parties to market its installment payment plans, expanding its reach even further. The company is eyeing B2B2C partnerships, having already secured major textile partners to bolster its growth in this sector.
The Road Ahead for Qist Bazaar
As Qist Bazaar looks toward the future, its focus remains on driving financial inclusion and making consumer goods accessible to all Pakistanis. By leveraging strategic partnerships, new funding, and cutting-edge technology, the company is poised to continue its rapid expansion in the coming years. Its success serves as a model for how fintech can be used to bridge the financial gap in emerging markets, and its impact on Pakistan’s consumer financing landscape is set to grow as more people gain access to its services.
With this latest round of funding, Qist Bazaar is not only well-positioned to scale its operations but also to further its mission of empowering millions of underserved Pakistanis through flexible, installment-based financing solutions.