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 participation from Gobi Partners, a prominent Asia-focused venture capital firm. Additionally, Bank Alfalah, one of Pakistan’s largest commercial banks, also participated after previously leading Qist Bazaar’s seed round.
This marks the first time an international venture capital firm has joined forces with a major Pakistani bank to take an equity stake in a BNPL fintech, a significant moment for Pakistan’s growing consumer financing sector.
Transforming Consumer Financing in Pakistan
Qist Bazaar, licensed as a Non-bank Financial Company (NBFC) by the Securities and Exchange Commission of Pakistan (SECP), offers installment-based payment solutions to unbanked and underbanked populations. In just three years, the platform has disbursed over 55,000 product-based loans, amounting to $12 million. The loans enable Pakistanis to purchase essential items like mobile phones and home appliances through affordable monthly payments.
A Game-Changer in Financial Inclusion
What sets Qist Bazaar apart is its inclusive approach, catering to a diverse range of customers, from those without a financial history to individuals with established banking relationships. The company’s eligibility criterion, “Every Pakistani,” allows underserved groups like domestic workers, rickshaw drivers, and students to access installment-based financing. Qist Bazaar’s hybrid scoring model, which blends traditional and alternative methods to assess creditworthiness, makes it easier for unbanked consumers to join the formal financial system.
Arif Lakhani, Co-founder and CEO of Qist Bazaar, remarked, “Our mission is to make essential items like ceiling fans and water dispensers accessible to everyone in Pakistan. With the support of our investors, we offer flexible payment plans, helping more people meet their basic needs.”
Strategic Backing from Industry Leaders
Qist Bazaar’s partnership with Bank Alfalah offers access to debt financing from leading financial institutions, enhancing its capacity to serve customers with limited access to credit. Indus Valley Capital, the lead investor for the Series A round, has previously backed several Pakistani startups, including Bazaar, Maqsad, and BridgeLinx.
Aatif Awan, Founder and Managing Partner at Indus Valley Capital, said, “Qist Bazaar has the potential to reshape consumer financing in Pakistan, much like Bajaj Finance did in India. The impact they can have on millions of Pakistanis is incredibly exciting.”
EBITDA-Positive from Day One
Qist Bazaar stands out by being EBITDA-positive since inception, a rare achievement among high-growth fintech startups. The company’s disciplined approach, coupled with strong unit economics, positions it for sustainable growth. Gobi Partners’ General Partner Naiel Ikram praised Qist Bazaar’s use of technology for operational efficiency and high growth, noting that the founders’ deep experience in BNPL has enabled them to understand their target customers effectively.
Expansion Plans
With the new funding, Qist Bazaar is preparing to scale its operations across Pakistan, with plans to expand to cities like Islamabad, Sukkur, Faisalabad, and Multan. The company will also introduce new product categories, such as solar power generators for small households, and expand its dealer network. Early successes have already been achieved in securing major textile partners as part of Qist Bazaar’s B2B2C efforts.
As Qist Bazaar continues its mission of making essential goods accessible to underserved populations, the company is well-positioned to become a major player in Pakistan’s BNPL market.
