‘Robinhood of Pakistan’ banks $4.5m in round led by Hong Kong, US investors

Pakistani fintech startup KTrade said it has raised US$4.5 million in a funding round led by Hong Kong-based TTB Partners and HOF Capital from New York.

Fintech investor Christian Angermayer and David Mortlock, managing partner of German bank Berenberg, also particiapted in the round, along with leading Pakistani business families, according to a statement from KTrade.

The KTrade team / Photo credit: KTrade

Created by Pakistani brokerage major Khadim Ali Shah Bukhari Securities, KTrade is a stock trading app that provides easier access to financial markets for retail investors. The app works the same way as its global peers, which includes XP in Brazil, Zerodha and Groww in India, Tiger in China, Flatex in Germany, and Robinhood in the US.

KTrade said it has garnered over 200,000 users since launching in 2019, and it aims to reach 10 million Pakistanis by 2023.

“People in Pakistan have traditionally turned to gold or real estate when they consider investment options. However, as the regulatory approach, authority, and credibility of the Karachi Stock Exchange has grown, more people are getting comfortable with stock market investing,” said KTrade co-founder Ali Farid.

According to the statement, Pakistan’s Karachi Stock Exchange Index has rallied by 19% per annum over the past 20 years, with volumes increasing by 7x over the last 18 months due to regulatory reforms and increased participation among retail investors.

Prior to KTrade, Farid served as the chief financial officer of UK-listed fintech firm SafeCharge and a partner at Autonomous Research, a London-based firm focused stock market analysis.