Qist Bazaar, the leading Buy Now Pay Later (BNPL) fintech startup in Pakistan, successfully raised $3.2 million in a Series A funding round.
Indus Valley Capital led the round, with additional participation from Gobi Partners, a well-known Asia-focused venture capital firm managing assets worth $1.6 billion. Bank Alfalah, one of Pakistan’s largest commercial banks, has already invested in Qist Bazaar during its seed round.
“At Qist Bazaar, we are committed to bringing the fundamental needs of Pakistanis within their reach,” Qist Bazaar’s CEO and Co-founder Arif Lakhani said. “Home essentials like ceiling fans and water dispensers are necessities, not luxuries, yet many cannot afford them. With the support of our investors, we offer flexible payment plans, making these essential items more accessible to everyone.”
“What stood out to us about Qist Bazaar is how effectively they use technology to drive operational efficiencies while simultaneously leveraging it for sustainable, high growth,” Naiel Ikram, General Partner for Gobi Partners’ Pakistan-focused fund, added. “The founders’ deep experience in the BNPL space, combined with their nuanced understanding of their target customers’ behavior, reminds us of some of the most successful founders we’ve backed across Asia.”
The funding milestone marked a historic collaboration, being the first equity partnership between international venture capitalists and a major Pakistani commercial bank in the BNPL fintech space.
Innovative approach to financial inclusion
Founded in 2021, Qist Bazaar operates under a license from the Securities and Exchange Commission of Pakistan (SECP) as a Non-bank Financial Company (NBFC). The platform’s mission is to offer installment-based payment solutions to unbanked and underbanked segments of the population. Over the past three years, Qist Bazaar has disbursed more than 55,000 product-based loans worth $12 million, empowering Pakistanis to purchase essential items such as mobile phones and home appliances through affordable monthly payments.
The platform stands out for its inclusive approach, providing installment financing to a diverse range of customers, including those without any formal financial history. Its unique hybrid scoring model, which evaluates creditworthiness through both traditional and alternative methods, enables unbanked individuals to access formal financing options.
Strong Strategic Backing
Qist Bazaar’s success has been bolstered by its early partnership with Bank Alfalah, which not only led the startup’s seed round but also offered access to debt financing from Pakistan’s leading financial institutions. This backing further strengthens Qist Bazaar’s ability to cater to customers with limited access to traditional credit facilities.
Aatif Awan, Founder and Managing Partner at Indus Valley Capital, praised the startup’s potential, stating, “We see enormous potential in Qist Bazaar’s ability to fundamentally reshape how consumer financing is done in Pakistan, similar to what Bajaj Finance did for India. What excites us here is not just the market opportunity but the impact that Qist Bazaar can have on the everyday lives of millions of Pakistanis.”
Positive Financial Trajectory
Unlike many rapidly growing fintech companies, Qist Bazaar has been EBITDA-positive since its inception, showcasing strong unit economics and a focus on sustainable growth. The company’s disciplined financial approach, along with its low delinquency rate, positions it to become a dominant player in Pakistan’s BNPL market.
Future Plans for Growth
With this new capital injection, Qist Bazaar aims to accelerate its expansion plans, including enhancing its technology infrastructure, introducing new product categories like solar power generators, and scaling its operations across multiple cities in Pakistan. The company is also growing its dealer network and forging B2B2C partnerships to broaden its reach.
Qist Bazaar is poised to continue driving financial inclusion and reshaping the consumer financing landscape in Pakistan.