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Exclusive: Pakistani fintech company SadaPay raises US$7.2 million, becoming the country’s largest fundraising seed round

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Islamabad-based financial technology company SadaPay raised $7.2 million in a round of financing led by New York-based Recharge Capital. This funding is the largest ever received by a Pakistani startup company. It includes the participation of return investors Kingsway Capital, Raptor Group and important financial technology angels, including Ualá founder Pierpaolo Barbieri, Ribbit Capital’s Brian McGrath, former General Catalyst partner Ilan Stern and Valon Technologies founder Andrew Wang.

Starting with digital wallets and debit cards, SadaPay’s goal is to establish a “new bank” for Pakistan. Currently, its mobile wallet is a private beta version, one of the most anticipated financial technology products in the country, with 200,000 people on the waiting list. After being approved in principle by the country’s central bank, it launched a private beta a few months ago. In this pilot phase, SadaPay is authorized to operate with up to 1,000 customers.

The start-up company will begin its public deployment after obtaining the full e-money institution license from the National Bank of Pakistan. SadaPay did not share a timetable, but its founder Brandon Timinsky told MENAbytes that they will obtain permission after passing the review of the regulator.

Brandon launched SadaPay in 2019 after selling its first start-up company in the United States. He was visiting Pakistan at the invitation of his friend and was amazed at the opportunity this country has for more than 220 million people: “My first visit to Pakistan really opened my eyes to the possibilities that have been hidden from the outside world. due to the difficult history of the country over ten years ago, “he said in an interview with MENAbytes.

According to the company’s statement, Pakistan is the fifth most populous country in the world but has the third largest non-bank population after China and India. Brandon believes the country is in a turning point for digital spelling: “Pakistan has a refreshing progressive regulator, a growing non-banking middle class, widespread use of smartphones and over 70% of the population is under 35 years old. We believe that a combination of factors will make Pakistan one of the best places for growing FinTechs in the world and we are excited to be a leader in this ecosystem. „

SadaPay mobile app allows users to create a mobile wallet account with just a few clicks in just two minutes and start using it right away to transfer for free to any bank account in Pakistan. The registration process is transparent, mainly because the company is affiliated with the National Database & Registration Authority (NADRA) in Pakistan, which means it can instantly verify who Pakistan’s identity is anywhere. Anywhere in the world, including 15 million Pakistani foreigners living abroad.

The account comes with a virtual debit card backed by MasterCard, which can be used for online transactions anywhere in the world. SadaPay also offers an unlimited physical debit card that users can request from its app and receive it at their doorstep within two working days (within the entire Pakistan). The physical card allows users to withdraw free cash up to 3 times from any ATM in Pakistan (per month). The company also supports remittances through services such as Transferwise, Remitly and WorldRemit.

The company’s CEO told that any Pakistani can use their NADRA-issued ID card to open an account in a SadaPay account once it is launched, adding that this will be the best way to send money free of charge. exchange. World Ranking.

“Since SadaPay does not bear the high cost of managing the physical infrastructure of traditional banks, it passes these savings on to customers in the form of free financial services. The statement stated that the company will provide revenue through high-quality products, such as merchant services and remittances.

Most banks in Pakistan do not provide customers with a good digital experience, and even many banks require branches to visit, which is as simple as applying for a bank card. SadaPay focuses on customer experience to replace these banks in order to promote itself, which is obviously why it was so well received by early Beta testers-many testers said the app, its simplicity and live chat support Appreciation-App, on different social media platforms.

SadaPay plans to use the latest funds to develop its products and attract global talents to increase its number of employees to more than 100 in the next 12 months. In the past twelve months, the company has hired senior executives, including Jon Sheppard (Jon Sheppard), who served as the technical director of Gojek’s financial services, and Taser, the bank’s former chief financial officer of JazzCash. · Ali (Tayseer Ali). Currently, it has a team of approximately 50 employees in offices in Islamabad, Karachi and Lahore. They are also increasingly recruiting remotely in Europe and Asia.

Source: MenaBytes

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