Breaking news from Pakistan! Digital lending platform AdalFi
secures a massive $7.5 million in funding from a group of investors led by
UAE-based COTU Ventures and Chimera Ventures, along with Pakistani-based Fatima
Gobi Ventures and Zayn Capital, and a team of influential “angel” investors
including executives from US fintech giant Plaid.
This is the first major corporate financing announcement in
the country for the year, and comes as Pakistan battles an ongoing economic
crisis.
Despite a challenging financial climate, AdalFi is leading
the charge in startup funding, bucking the trend of declining investments in
the region.
AdalFi has revolutionized the financial sector in Pakistan
by leveraging proprietary technology to help banks tap into a vast, untapped
customer base.
With only 30% of adults in the country having access to
formal banking services, AdalFi’s B2B2C fintech platform is making waves by
enabling personalized digital marketing to qualified prospects and real-time
loans to bridge the gap.
Traditional banking institutions often have long lead times
for loan disbursements, which can force consumers to turn to informal credit
markets.
AdalFi is changing this narrative by reducing loan
processing times to just a few minutes, making credit available to a broader spectrum
of society.
With 14 financial institutions already signed up, including
the likes of United Bank Limited (UBL), Habib Bank Limited (HBL), and Meezan
Bank, AdalFi is the go-to platform for loan disbursement in Pakistan.
Co-founder and CEO Salman Akhtar notes that AdalFi’s
rigorous credit scoring mechanism ensures portfolio quality, which is why banks
have signed up with them.
The platform monetizes by taking a share of the revenue
generated by the bank from the loan, while also sharing the downside risk of
non-performing loans.
AdalFi’s approach to banking is unique and ensures that
financial inclusion is no longer just a pipe dream in Pakistan.
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