Pakistani fintech startup Abhi has successfully secured $15 million in debt financing through a credit facility led by Shorooq Partners and Amplify Growth Partnership.
This funding is a significant step forward in Abhi’s mission to enhance financial inclusion across the MENAP region, which includes the Middle East, North Africa, and Pakistan (MENAP).
Omair Ansari, CEO and co-founder of Abhi, described the investment as a “strong vote of confidence from prominent fintech investors.” He emphasized the importance of this funding, stating, “With this funding, we are poised to scale our impact, ensuring that every employee, regardless of their role, has access to the financial flexibility they need to thrive.”
The company aims to leverage this capital to expand its Earned Wage Access (EWA) services and other innovative financial solutions.
What is EWA?
Waiting for payday can be challenging, especially when unexpected expenses arise. To address this issue, many employers offer earned wage access or EWA, allowing employees to access a portion of their earned wages before the scheduled payday. This service, also known as on-demand pay or early pay, provides workers with greater financial flexibility by enabling them to withdraw funds they have already earned.
Key Highlights
- Abhi secures $15 million in debt financing led by Shorooq Partners and Amplify Growth Partnership.
- The funding aims to enhance financial inclusion for blue- and white-collar workers in the MENAP region.
- Abhi has facilitated over $55 million in earned wage access across 545,000 transactions.
Accelerating growth and financial flexibility
Abhi has already made significant strides in the fintech landscape, having facilitated approximately $55 million in earned wage disbursement services through over 545,000 transactions in the UAE to date. This new financing is expected to enable Abhi to further enhance its operational capabilities and extend its services to meet the growing needs of the country’s diverse workforce.
Nathan Kwon, Head of Private Credit at Shorooq Partners, noted that the financing will enhance financial inclusion for underserved communities in the UAE. “With the support of Shorooq and Amplify, Abhi is poised to accelerate its growth and become a leading innovator in the region,” he said.
Transforming Financial Services
Amplify Growth Partnership’s Fund Head, Sharaf Sharaf, expressed excitement about co-leading the investment, underscoring Abhi’s role in transforming financial services. “Through innovative technology, Abhi is empowering both SMEs and their employees, addressing critical financial needs while democratizing financial services across our regions,” Sharaf stated.
The MENAP region is currently undergoing rapid digitalization, supported by increased regulatory backing for fintech innovation. As a pioneering player in this dynamic environment, Abhi is seizing the opportunity to deliver essential financial services to previously underserved populations.
Abhi’s strategic partnership with Codebase Technologies
In addition to securing funding, Abhi has entered into a strategic partnership with Codebase Technologies, a rapidly growing open API banking fintech. This collaboration aims to enhance Abhi’s EWA offerings by integrating them into Codebase’s Digibanc platform. The partnership will provide businesses with powerful tools to support their workforce, alleviate financial stress, and boost employee productivity.
The integration promises to streamline HR and finance processes, offering a smarter, more efficient approach to managing employee financial wellness. As Abhi continues to grow, its commitment to transforming the financial landscape remains steadfast.
Recent reports reveal that around 76% of workers live paycheck to paycheck, with over 60% facing financial stress that negatively affects their productivity and job satisfaction. Additionally, 1.7 billion people globally lack access to formal financial services, highlighting an urgent need for accessible financial solutions. The partnership between Codebase Technologies and Abhi aims to tackle these challenges by offering alternatives to high-interest loans and costly credit options.
