Leading Pakistan fintech raises $7.3 million to drive GCC expansion

Postex seeks to solve access to capital for ecommerce merchants

Top Stories

UAE announces 2-month grace period for residence visa violators

UAE announces fee refund for tax service charges from August 1

Paid parking in Dubai: Residents face up to Dh4,000 extra yearly costs when new rates kick in

Published: Tue 20 Aug 2024, 9:19 PM

PostEx, one of Pakistan’s leading fintechs, announces a $7.3 million pre-Series A funding round. The round was led by Conjunction Capital – the technology focused, global venture capital firm. Other participants included new investors – Dash Ventures, Sanabil500; and existing investors – VSQ, FJ Labs, and Zayn VC.

The proceeds will assist PostEx in consolidating its market leadership in Pakistan and support an aggressive expansion into the GCC – where new markets and customers will have access to PostEx’s services.

PostEx provides instant access to capital – removing conventional barriers and challenges of traditional financing methods – while its embedded logistics solution makes ecommerce clients’ delivery operations far more efficient; mitigating customers’ cash flow issues. Access to capital is critical for online businesses looking to scale; those with adaptable financing partnership are strategically positioned to leverage opportunities as they arise, driving business success.

PostEx is successfully disrupting the established finance and logistics industries in Pakistan, amid a positive market environment with significant growth headroom. The country’s $6 billion ecommerce sector accounts for just 1-2% of total retail transactions, versus a global average of c. 15%.

The fund raise follows a very successful 18 months for PostEx. The company crossed annual recurring revenue of $21 million – achieving profitability – and is processing over four million monthly transactions. It has been the market leader for the past two years; growing swiftly after commencing operations less than 36 months ago.

Muhammad Omer Khan, CEO and Founder of PostEx

Muhammad Omer Khan, CEO and Founder of PostEx, said: “While the GCC & Pakistan have a thriving and fast-growing ecommerce landscape, the reality is that legacy financial institutions don’t fulfil the needs of digital entrepreneurs and online businesses. Ecommerce businesses need access to flexible and affordable funding solutions and our mission at PostEx is to empower online sellers by addressing their most critical challenge: access to the right capital to grow their business through our advanced embedded logistics solution.”

Kirill Kozhevnikov, Managing and Founding Partner at Conjunction Capital, said: “Our investment in PostEx underscores the strategic importance of the Saudi Arabian market as a key growth area within the GCC. PostEx’s innovative approach to integrating fintech with logistics positions them uniquely to address the evolving needs of e-commerce businesses in this region. We are committed to supporting their expansion and driving further advancements in the market.”

PostEx acquired Pakistani logistics service provider, Call Courier, in 2022, expanding its footprint across the entire country. Prior to its pre-Series A, PostEx had raised US$8.6 million from investors including Global Founder Capital, MSA Capital, and Shorooq Partners.