Interested in more data on startup investments? Access our data on 7,490+ startup funding rounds
The Lahore-based financial solutions and delivery for E-commerce startup PostEx has successfully raised $1.5M in its latest funding round. The Seed round was led by MSA Capital, with participation from Zayn Capital, Shorooq Partners, VentureSouq (VSQ), PNO Ventures, 92Ventures, and Pakistan’s Arbisoft CEO Yasser Bashi as an angel investor.
Founded by Omer Khan, Saad Mahmood, Babar Razzaq and Adil Naseem, PostEx set forth to tackle the Cash on Delivery challenge for E-commerce startups around Pakistan. Through seamless financing solutions and integrated delivery and logistics operations, PostEx helps E-commerce businesses access new and more convenient revenue channels.
The E-commerce industry in Pakistan climbed the ranks to become the second-most funded ecosystem in Pakistan over 2021 YTD, driven by a 370% YoY increase in capital raised as most recently observed in our August 2021 Venture Investment Dashboard. The potential for Tech-adoption and disruption reflects well in startups like DigiKhata, Dastgyr, and Tajir Pakistan which integrate financial solutions to service E-commerce b2b or b2c models. This latest investment not only accounts for almost 6% of all funds raised in the FinTech industry in Pakistan YTD but also opens new horizons for E-commerce servicing in the country.
In a primarily cash-based economy, running a business online comes with challenges of cash recovery cycles and impeding scaling due to working capital constraints. Challenges on the last-mile delivery front also lead to high cancellations and the lack of financing options adversely affects the growth of E-commerce businesses in Pakistan. PostEx addresses both challenges by providing upfront payment on Cash on Delivery orders, complemented by an efficient in-house logistics fleet for E-commerce businesses, thereby helping businesses grow via easy and instant access to cash and liquidity. Omer Khan, Co-Founder and CEO highlighted “Pakistan’s E-commerce landscape is rapidly evolving and lack of access to financing opportunities is hampering the growth of online merchants and the E-commerce landscape broadly. Our goal is to be the first and last source of funds for fast-growing E-commerce businesses to meet all their capital requirements and accelerate their growth.”
With the increasing volume of digital payments, PostEx had also introduced a digital payments solution that enables businesses to collect payments online from consumers through PostEx’s checkout plugins. MSA Capital’s Time Chen commented on PostEx’s impactful integrations "The rapid growth of E-commerce in Pakistan is being held back by high levels of Cash on Delivery (CoD). PostEx’s integrated instant payments with logistics is a model we have backed globally to resolve the hurdles posed by CoD and believe that Omer and team have the execution capabilities to build a regional leader."
The all-encompassing financial product and digital payments complemented by logistics support provide PostEx the perfect moat and position it uniquely as a one-stop-shop for E-commerce with the increasing number of retailers selling their goods online. “PostEX is solving key problems for the rapidly scaling e-commerce market in Pakistan through its factoring and logistics solution. Their innovative approach creates stickiness with retailers, providing the last mile and working capital solutions eventually becoming their financial products solutions provider,” said Faisal Aftab, Co-Founder and Managing Partner at Zayn Capital.
The Pakistan-based startup plans to utilize its newly acquired funds to grow its products and bring depth to its existing Tech-based CoD financing platform. Currently operating with a team of over 150 members, it plans to further grow its team as it scales to new clients and services. In light of this market validating, platform boosting investment Tamer Azer, Partner at Shorooq Partners concluded “ Post-Ex represents the perfect intersection for our views on the potential of the Pakistani market as well as our deep appreciation for infrastructure support organizations in the E-commerce industry. A fantastic team building the right product that eliminates clear complexities facing many merchants looking to grow their E-commerce businesses."
Looking for leads in this industry? Access real-time data on FinTech startups in Pakistan