Pakistan-based Buy Now Pay Later (BNPL) fintech QistBazaar has secured a significant equity and Shariah-Compliant embedded finance partnership with Bank Alfalah, one of Pakistan’s largest commercial banks. The partnership involves Bank Alfalah acquiring a 7.2% equity stake in QistBazaar and becoming the company’s embedded lending partner. This collaboration is a milestone for Pakistan’s fintech sector, as it marks the first time a commercial bank has taken an equity stake in a BNPL fintech.
Facts
- Bank Alfalah has invested PKR 500 million (US$1.7 million) in QistBazaar and acquired a 7.2% equity stake in the company.
- The partnership between QistBazaar and Bank Alfalah strengthens the fintech’s position as an embedded lending platform.
- QistBazaar, a Securities and Exchange Commission of Pakistan (SECP) licensed non-bank financial company (NBFC), has been EBITDA positive since its inception in 2021.
- QistBazaar has delivered over 20,000 products to unbanked consumers in Pakistan, offering affordable monthly payments and a wide range of consumer goods.
- QistBazaar’s eligibility criteria for its Buy Now Pay Later service is “Every Pakistani,” making it inclusive and accessible to a broad range of individuals.
- The partnership with Bank Alfalah will enable QistBazaar to offer enhanced digital financing products on its platform, expanding its ability to serve customers with limited or no access to formal credit.
- The collaboration aims to improve financial inclusion, provide innovative solutions, and address the needs of customers with limited access to credit and lower purchasing power
