Singapore VC firm leads seed round of Pakistani fintech startup for MSMEs

Pakistani fintech startup CreditFix announced that it has raised an undisclosed sum in in seed round led by Insitor Partners, a venture capital firm based in Singapore.

The CreditFix team/ Photo crediy: CreditFix

Deosai Ventures also took part in the financing round.

Founded in 2018, CreditFix offers conventional and Shariah-based financial services, with a focus on microbusinesses as well as small and medium-sized enterprises. The startrup uses its platform to underwrite and extend asset-backed loans in the range of US$60 to US$10,000.

CreditFix has also been assisted by StratLink, an emerging markets-focused financial advisory firm.

The deal is the first convertible loan financing from an international investor into a Pakistani company that has been approved by the State Bank of Pakistan (SBP), CreditFix said. Investors including Act Group and other high net worth individuals have also backed the company in the convertible loan facility.

“Our goal is to pave the way for cheaper, faster, and equitable access to finance for all strata of society,” said Hammad Umer, country manager for Insitor Partners.

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The development comes amid a rising need to address financial inclusion in Pakistan, which currently stands at 14%.

Abhi, another Pakistani fintech startup that gives employee salary advances, recently raised US$2 million in a seed round led by Vostok Emerging Finance to develop the platform’s technology and increase hiring, among others.