Qist Bazaar, Pakistan's leading Buy Now Pay Later (BNPL) fintech platform, has successfully raised $3.2 million in its Series A funding round, led by Indus Valley Capital. The round also saw participation from Gobi Partners, a prominent Asia-focused venture capital firm managing assets worth $1.6 billion. Bank Alfalah, one of Pakistan's largest commercial banks, which led Qist Bazaar's seed round, has also continued its support, making this 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.
Qist Bazaar, licensed by the Securities and Exchange Commission of Pakistan (SECP) as a Non-bank Financial Company (NBFC), is dedicated to providing installment-based payment solutions for Pakistan's unbanked and underbanked populations. In just three years, the company has disbursed over 55,000 product-based loans, totaling $12 million, enabling consumers across Pakistan to afford essential items like mobile phones and home appliances through affordable monthly payments.
Qist Bazaar, licensed by the Securities and Exchange Commission of Pakistan (SECP) as a Non-bank Financial Company (NBFC), is dedicated to providing installment-based payment solutions for Pakistan's unbanked and underbanked populations. In just three years, the company has disbursed over 55,000 product-based loans, totaling $12 million, enabling consumers across Pakistan to afford essential items like mobile phones and home appliances through affordable monthly payments.
The company's inclusive approach sets it apart, as it caters to a diverse range of customers, from those with no formal financial history to those with established banking relationships. Qist Bazaar's simple eligibility criterion—"Every Pakistani"—has empowered underserved groups such as domestic workers, rickshaw drivers, students, and micro-entrepreneurs by providing them access to much-needed financing. The fintech's hybrid scoring model, which combines traditional and alternative credit assessments, further enhances accessibility for unbanked consumers.
Arif Lakhani, Co-founder and CEO of Qist Bazaar, expressed his commitment to addressing fundamental needs:
"At Qist Bazaar, we are dedicated to bringing essential goods within the financial reach of Pakistanis. Items like home appliances and mobile phones are necessities, not luxuries, yet many struggle to afford them. With the support of our investors, we are making these necessities accessible through flexible payment plans."
Qist Bazaar's strong partnership with Bank Alfalah, which led the company's seed round, continues to yield dividends. The collaboration is expected to provide Qist Bazaar with significant debt financing from top financial institutions, enhancing the company's ability to serve customers who have limited or no access to formal credit.
Indus Valley Capital, the lead investor for the Series A round, is a key backer of several successful Pakistani startups, including Bazaar, Maqsad, BridgeLinx, and Farmdar.
Aatif Awan, Founder and Managing Partner at Indus Valley Capital, highlighted Qist Bazaar's transformative potential:
"We see enormous potential in Qist Bazaar's ability to reshape consumer financing in Pakistan, akin to what Bajaj Finance has achieved in India. What excites us most is not just the market opportunity but the tangible impact Qist Bazaar can have on the daily lives of millions of Pakistanis."
Unlike many high-growth fintech startups, Qist Bazaar has maintained a positive EBITDA since its inception, reflecting its strong unit economics and focus on sustainable growth. This disciplined approach, coupled with a growing customer base and a low delinquency rate, positions Qist Bazaar as a leader in Pakistan's BNPL sector.
Naiel Ikram, General Partner at Gobi Partners, praised the fintech's use of technology to drive operational efficiency and growth:
"Qist Bazaar's innovative use of technology to streamline operations while enabling rapid, sustainable growth stood out to us. The founders' deep expertise in the BNPL space, combined with their understanding of customer behavior, mirrors some of the most successful founders we've backed across Asia. With a clear path to scale by serving underserved users, Qist Bazaar is poised to replicate the success stories we've witnessed across the region."
With the fresh infusion of capital from the Series A round, Qist Bazaar plans to accelerate its growth by expanding its product offerings, enhancing its technology infrastructure, and scaling operations across Pakistan. The company is set to establish a presence in key cities like Islamabad, Sukkur, Faisalabad, and Multan while bolstering its operations in Karachi and Lahore. Additionally, new product categories, such as solar power generators for small households, are in the pipeline.
To extend its reach, Qist Bazaar has also launched a dealer network across various product categories, allowing partners to market its installment-based payment plans. Furthermore, the company has initiated B2B2C efforts, securing partnerships with major players in the textile sector.