In a first for fintech in the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region, Pakistani startup Abhi has raised funds from its first sukuk bond.
The salary advance platform raised $2 billion, or $6.8 million, in what its chief executive officer (CEO) and co-founder Umair Ansari called an industry first.
Ansari said demand exceeded expectations with subscriptions reaching double the expected amount.
The Karachi-based startup, which was founded in 2021, aims to enable its partners’ employees to withdraw salary advances based on their accrued wages at any time. It also provides working capital to companies.
Abhi raised funds at a valuation of $90 million within a year of its launch and entered the UAE in December. The startup is currently in the process of buying a stake in courier company Universal Network Systems Limited.
Funding for Pakistani startups has dried up this year amid one of the country’s worst economic crises. Several startups have shut down in recent months, including Airlift and Wawacar, while others such as Maersk-backed Trella have announced exits from the country.
The government is trying to revive a stalled loan program with the International Monetary Fund (IMF) for a much-needed economic bailout, after its foreign exchange reserves have fallen to critical levels. are
Meanwhile, the country has the fastest inflation in South Asia, where people are particularly burdened by rising food and fuel prices. Ansari said that amid the economic crisis, people are accessing salaries from Abhi’s platform more than ever while companies are also accessing working capital more frequently.
“With this new funding, we can help ease the financial burden on struggling companies.
“The market in Pakistan is still so deep because the banks have moved away from it when it comes to lending to the real economy. We believe this is an environment for us to really grow,” the CEO said. said
