Sequoia SEA co-leads $17.6m seed round in ex-Google execs’ fintech firm

Dbank, a Pakistan-based fintech firm, has raised US$17.6 million in a seed round co-led by Sequoia Capital Southeast Asia and Kleiner Perkins. This marks Sequoia’s first investment in Pakistan.

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Founded in 2021 and closing its seed round in March, Dbank is in the process of building a user-centric digital banking system based on ethical banking with an Islamic ethos.

Though the firm is currently focused on Pakistan, it has ambitions to expand to other Muslim-majority markets.

Pakistan is the third-largest unbanked nation globally, with 110 million adults – or 79% of the country’s population – without formal financial services, a World Bank report stated.

The funds from this round will be earmarked to meet the paid-up capital requirements to start its bank, as well as for operational activities like employee costs.

Islamabad-headquartered Dbank was founded by Tania Aidrus and Khurram Jamali, who have both held leadership positions at Google’s payments unit in Singapore.

News of the firm’s funding comes after the country’s central bank, the State Bank of Pakistan (SBP), introduced a new framework for digital banking licenses in January. The SBP has introduced two different types of licenses: digital full bank and digital retail bank licenses. Dbank has applied for the latter and is waiting on confirmation.

Despite the fierce headwinds affecting startups worldwide, digital banking in Pakistan is largely underdeveloped, so its fintech sector, which was the country’s second-highest-funded industry in 2021, has a lot of potential.

An increasing number of players are now looking to set up shop in the country. As of April, 20 banks have applied for a digital banking license, though the SBP says it will only initially grant five licenses.

Other strategic investors and partners in this round include:

• Nubank
• Askari Bank
• Rayn
• RTP Global

See also: Fintech a bright spot in Pakistan’s breakout year