Qist Bazaar, Pakistan’s leading Buy Now Pay Later (BNPL) fintech platform, has raised $3.2 million in Series A funding, the startup announced.
Led by Pakistan-focused venture capital firm Indus Valley Capital with participation from Asia-focused Gobi Partners, the round marks the first equity partnership between international VCs and a leading Pakistani commercial bank, Bank Alfalah. This landmark deal signals a new chapter for Pakistan’s rapidly growing consumer financing sector.
Founded in 2021, Karachi-based Qist Bazaar is a licensed Non-Banking Financial Company (NBFC) providing installment-based payment solutions to Pakistan’s unbanked and underbanked communities. Pakistan, a nation of 240 million people, has one of the largest unbanked populations globally. According to central bank estimates, only 60% of its 137 million adults—roughly 83 million—hold a bank account.
In just three years, the company has disbursed over 55,000 loans worth $12 million, helping individuals purchase essential items like mobile phones and home appliances through affordable monthly plans.
Key Points
- Series A Funding: $3.2 million raised, led by Indus Valley Capital and Gobi Partners.
- Equity Partnership: First-ever collaboration between international VCs and a Pakistani commercial bank (Bank Alfalah) in the BNPL sector.
- Services: Qist Bazaar offers budget-friendly and interest-free installment plans
- Future Plans: Expansion into major cities and new product lines, with plans to serve more underserved communities.
- Customer Reach: Over 55,000 loans disbursed, valued at $12M, targeting unbanked and underserved communities.
Driving Financial Inclusion in Pakistan
Qist Bazaar offers interest-free installment plans, providing crucial financial relief amid Pakistan’s rising inflation. As prices soar, these plans enable consumers to purchase essential goods and services in manageable payments without extra charges, ensuring a fair and transparent solution during tough economic times. BNPL services are especially popular among tech-savvy Millennials and Gen Z, who tend to be cautious about using credit cards.
Qist Bazaar’s core mission is to offer financial flexibility to underserved segments of the population. With a simple eligibility criterion of “Every Pakistani,” the platform empowers everyone—from domestic workers to students and micro-entrepreneurs—to access installment financing. A hybrid credit scoring model, blending traditional and alternative methods, enables individuals without formal credit histories to be evaluated for loans.
Arif Lakhani, Co-founder and CEO, stated: “At Qist Bazaar, we are committed to bringing the fundamental needs of Pakistanis within their reach. Home essentials like ceiling fans and water dispensers are necessities, not luxuries, yet many cannot afford them. With the support of our investors, we offer flexible payment plans, making these essential items more accessible to everyone.”
Strategic Investment
Qist Bazaar has attracted attention from prominent investors like Indus Valley Capital and Gobi Partners, both of which see significant growth potential in Pakistan’s BNPL space. The fintech has also secured seed funding from Bank Alfalah, which provides strategic access to debt financing and infrastructure to support its future expansion.
Naiel Ikram of Gobi Partners commented, “What stood out about Qist Bazaar is how effectively they use technology to drive operational efficiencies while simultaneously leveraging it for sustainable, high growth.” He added that the founders’ “deep experience in the BNPL space, combined with their nuanced understanding of their target customers’ behavior, reminds us of some of the most successful founders we’ve backed across Asia.”
The platform is unique in its sustainable, EBITDA-positive business model, demonstrating strong financial health from the outset.
Aatif Awan, Founder and Managing Partner at Indus Valley Capital, shared, that they saw “enormous potential in Qist Bazaar’s ability to fundamentally reshape how consumer financing is done in Pakistan, similar to what Bajaj Finance did for India.” He added: “What excites us here is not just the market opportunity but the impact that Qist Bazaar can have on the everyday lives of millions of Pakistanis.”
Indus Valley Capital, the lead for the series A round, is a prominent investor known for being the first VC to back several category-leading Pakistani startups including Bazaar, Maqsad, BridgeLinx and Farmdar.
Expansion and Future Plans
With its latest funding, Qist Bazaar plans to scale its operations across Pakistan, expanding into cities like Islamabad, Sukkur, and Faisalabad. The fintech will introduce new product categories, such as solar power generators, and build a broader dealer network. Early successes in the B2B2C space also hint at further growth opportunities through partnerships with key players in various sectors.
