One of the top fintech companies in Pakistan, PostEx, has announced a pre-Series A funding round of $7.3 million. Conjunction Capital, a global venture capital firm with a focus on technology, led the round. Other attendees included both new and returning investors (VSQ, FJ Labs, and Zayn VC) as well as new investors (Dash Ventures, Sanabil500).
With the proceeds, PostEx will be able to maintain its dominant market position in Pakistan and pursue a bold expansion strategy into the GCC, opening up new markets and clientele for its offerings.
PostEx employs a cutting-edge Fintech and logistics hybrid model. The business offers immediate access to capital, eliminating the obstacles and difficulties associated with traditional financing techniques. In addition, its embedded logistics solution significantly improves the efficiency of delivery for e-commerce clients, reducing cash flow problems for those clients. For online businesses to grow, access to capital is essential. Companies that have flexible financing arrangements are better positioned to take advantage of opportunities as they present themselves and grow their businesses.
In Pakistan, PostEx is successfully upending the well-established banking and logistics sectors in a favorable market with ample room for expansion. The US$6 billion e-commerce industry in the nation makes up only 1% to 2% of all retail transactions, compared to a 15% global average.
PostEx has had a very successful 18 months, hitting several operational and financial benchmarks, culminating in the fund raise. The company is processing more than four million transactions each month and has crossed the $21 million annual recurring revenue threshold, indicating profitability. With its rapid growth since starting operations less than 36 months ago, it has led the market for the last two years.
Muhammad Omer Khan, CEO and Founder of PostEx, commented:
“While the GCC and Pakistan have a thriving and fast-growing e-commerce landscape, the reality is that legacy financial institutions don’t fulfil the needs of digital entrepreneurs and online businesses.
“Ecommerce businesses need access to flexible and affordable funding solutions, and our mission at PostEx is to empower online sellers by addressing their most critical challenge: access to the right capital to grow their business through our advanced embedded logistics solution.”
Kirill Kozhevnikov, Managing and Founding Partner at Conjunction Capital, commented, said:
“Our investment in PostEx underscores the strategic importance of the Saudi Arabian market as a key growth area within the GCC. PostEx’s innovative approach to integrating fintech with logistics positions them uniquely to address the evolving needs of e-commerce businesses in this region. We are committed to supporting their expansion and driving further advancements in the market.”
In 2022, PostEx expanded its nationwide presence when it acquired Call Courier, a Pakistani logistics service provider. PostEx had raised $8.6 million from investors, including Global Founder Capital, MSA Capital, and Shorooq Partners, prior to its pre-Series A.
