PostEx, a Pakistani finance and logistics platform, has raised $1.5 million in funding

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Pakistan Fintech

PostEx, a Pakistani fintech, and logistics firm has acquired $1.5 million in venture funding from prestigious institutional investors.

By growing its one-stop-shop for financing and logistics solutions for e-commerce platforms, the business said its project sought to solve difficulties around cash on delivery with quick and upfront payments.

MSA Capital, which has invested in Uber and Klarna among other notable tech startups, led the round, which also included Shorooq Partners in the UAE, Zayn Capital in Pakistan, VentureSouq in Dubai, PNO Ventures, 92Ventures, and others.

By delivering upfront payment through cash on delivery, PostEx claims to be trying to solve the difficulties of cash recovery cycles and working capital limits that stymie corporate growth.

The firm, which was founded by Omer Khan, Saad Mahmood, Babar Razzaq, and Adil Naseem, wants to use the cash to expand its product line and add depth to its existing technology-based COD financing platform. It currently employs over 150 people and expects to expand its workforce as it expands to additional clients and services.

“Pakistan’s e-commerce ecosystem is fast expanding, and a lack of access to funding possibilities is stifling the expansion of online merchants and the e-commerce scene in Pakistan,” Khan added.

“Our mission is to be the primary and last source of finance for fast-growing e-commerce enterprises, enabling them to satisfy all of their capital needs and accelerate their growth.”

“This is complemented with an in-house logistics fleet for e-commerce enterprises, thereby assisting them in growing through easy and rapid access to cash and liquidity,” the startup stated.

“Running a business online in a predominantly cash-based economy has hurdles in terms of cash recovery cycles, which impede expansion due to working capital limits.

High cancellations are also a result of last-mile delivery challenges, and a lack of funding choices has hampered the expansion of e-commerce enterprises in Pakistan “the statement adds.

The rapid rise of e-commerce in Pakistan is being slowed by high levels of COD, according to Tim Chen of MSA Capital.

“We believe that Omer and his team have the execution capabilities to establish a regional leader,” he continued. “PostEx’s integrated quick payments with logistics is a concept we have backed globally to remove the challenges faced by CoD,” he added.

Faisal Aftab, co-founder and managing partner of Zayn Capital, stated that PostEX’s factoring and logistics solution was overcoming significant difficulties for Pakistan’s fast-growing e-commerce business.

Tamer Azer, a partner at Shorooq Partners, praised the Post-Ex as a “perfect convergence” for “our ideas on the potential of the Pakistani market as well as our profound admiration for infrastructure support organizations in the e-commerce business.”

PostEx also announced a digital payments solution that “allows businesses to collect payments online from customers using PostEx’s checkout plugins,” according to the company.

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