Pakistan’s PostEx, a FinTech and logistics company based in Lahore, has raised $7.3 million in a pre-Series A funding round.
The round was led by Dubai-based Conjunction Capital. Along with Dash Ventures and 500 Global, the round also included PostEx’s previous investors, VentureSouq, FJ Labs, and Zayn VC, bringing its total funding to date to roughly $16 million.
PostEx was founded in 2020. Originally, the company provided third-party logistics for e-commerce merchants, but it has since developed into a platform that also provides non-dilutive, Shariah-compliant finance to aid them with cash flow problems.
As its logistics partner, the startup screened e-commerce merchants for its financing solutions, giving it access to a vast amount of data on them. On its website, it states that it has so far lent more than $8,000 million to over 8,000 companies. The startup emphasizes on its website that customers can easily transform their monthly revenue into fast liquidity, but it does not provide much data about loan quantities or rates.
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PostEx claimed in a statement that it conducts more than four million transactions monthly, has an annual revenue run rate of $21 million, and has been profitable for some months. Pakistan’s PostEx gained the upper hand in the market by acquiring Call Courier, a top e-commerce logistics provider in the nation, and has kept it ever since.
PostEx has already started a trial program in Saudi Arabia and intends to use the most recent funding to expand into the Middle East and North Africa. The business has worked with local financial institutions to offer its services to a select group of e-commerce merchants as it works toward obtaining a local license to provide financing options. In addition, it is testing its solutions in the United Arab Emirates, where it intends to launch after Saudi Arabia and has already obtained a license.
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Muhammad Omer Khan, the founder and CEO of PostEx, stated:
“While the GCC & Pakistan have a thriving and fast-growing eCommerce landscape, the reality is that legacy financial institutions don’t fulfill the needs of digital entrepreneurs and online businesses. Our objective at PostEx is to empower online sellers by addressing their most pressing challenge: access to the necessary cash to expand their business through our cutting-edge embedded logistics solution. eCommerce firms require flexible and affordable financial solutions.”
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 is in a unique position to meet the changing needs of e-commerce companies in this area thanks to their creative approach to fusing financial and logistics. Our dedication lies in facilitating their growth and propelling more developments within the industry.”
