Abhi Pvt., a Karachi-based finance firm, has raised funds at a $90 million valuation in less than a year of operation, according to Bloomberg. The firm received $17 million in funding in the most recent Series A round led by Speedinvest.
It is the venture capital firm’s first investment in Pakistan. Global Ventures, VentureSouq, VEF, Sturgeon Capital, Rallycap, FJ Labs, Fatima Gobi, Sarmayacar, and i2i Ventures were among the other investors.
In recent years, Pakistani entrepreneurs have drawn both domestic and foreign investors eager to tap into their untapped potential. Startups raised more than $350 million in 2021 alone, more than the previous six years combined.
Abhi provides people with an option to asking their employer, family, or friends for money until their next paycheck to help them make ends meet.
Small and medium-sized enterprises (SMBs) can also get funding for their working capital needs from the corporation.
Omair Ansari, Chief Executive Officer of Abhi, stated, “This is the first time you’re able to get this access in the country. As people and smaller companies get this access then it becomes something they want to keep using.”
The software simply takes a few seconds for registered customers to access funds at a modest 2 percent transaction cost. The monies are automatically deducted when the user’s next paycheck arrives.
Since its previous round in November, the company has grown from 200,000 to 650,000 users and registered over 150 businesses.
Ansari claimed that people are now using the app to get 15% to 20% of their monthly pay.
Concerning the investment, the Abhi founders stated, “We are on a mission to financially empower salaried individuals in Pakistan and this is just the beginning! ABHI is looking forward to partnering with more companies to help empower them and their employees with the range of financial wellness products we have to offer.”
Stefan Klestil, General Partner at Speedinvest, told Bloomberg about the recent investment, “Abhi has the potential to change millions of lives across MENA and South Asia. It’s no wonder they have been able to establish themselves as one of the fastest-growing Pakistani startups.”
To read our blog on “NayaPay, a fintech company, raises $13 million as it expands digital payments in Pakistan,” click here.