Creditfix, a Pakistani Fintech startup, has raised an unknown amount of early money in a round led by venture capital firm Insitor Partners Pte. Ltd.
This is the firm’s first investment in Pakistan, according to the Singapore-based impact investment firm.
The historic transaction is the first of its kind in Pakistan’s startup environment, as it represents the first-ever convertible loan financing from an international investor into a Pakistani company to be approved by the Pakistani Central Bank (SBP).
Local investors, ACT Group, and High Net Worth (HNW) individuals have also committed to the unsecured convertible loan facility. The funding arrangement was announced in Karachi on June 16, 2021, in the presence of Creditfix, Insitor Partners, Deosai Ventures, and ACT Group representatives. Creditfix was also assisted by StratLink, a financial advisory firm specialised on emerging markets.
With over 100 million people in Pakistan still unbanked, Creditfix was created in 2018 to provide conventional and Shariah-compliant financing solutions and financial services, with a focus on Micro, Small, and Medium Enterprises (MSME).
Creditfix employs its mobile application platform to underwrite and provide asset-backed, productive loans ranging from USD 60 to USD 6000.
Creditfix’s CEO and Founder, Owais Zaidi, stated, “We are pleased to work with investors who share our vision of profitability with responsibility and are eager to demonstrate our Risk at ScaleTM framework in action in Pakistan and the East African market.”
“We believe CreditFix’s underwriting model can help transform how credit is delivered to micro and small entrepreneurs and self-employed individuals,” said Hammad Umer, Pakistan Country Manager for Insitor Partners, a majority female-owned firm. Our objective is to pave the road for more affordable, timely, and fair access to finance for all segments of society.”
“The SBP was instrumental in facilitating this transaction by granting special permission, which paves the way for future foreign convertible loan transactions,” he said. We look forward to announcing additional ecosystem investments.”
Umer has been collaborating closely with Creditfix on the implementation of many impact indicators and ESG frameworks for the purpose of validating and tracking their progress.
Creditfix reaffirms Insitor’s long-term commitment to Pakistan and is the first of many future investments in meaningful enterprises in the country, according to Nicholas Lazos, Chief Investment Officer of Insitor. We’re thrilled to support a top-notch team and their creative approach to providing financial services to the general public.”
Creditfix is the only Fintech that combines a field-tested proprietary credit scoring model and technology platform with in-depth understanding of the consumer loan industry, according to Shehryar Hydri, Managing Partner of Deosai Ventures. Their team has an unmatched founder market fit, and we’re delighted to assist them in scaling during this sector’s historic boom.”
One of the most significant issues facing Pakistan’s financial inclusion is the gender divide, with Pakistan recently ranking 153/156 on the World Economic Forum’s (WEF) Global Gender Gap Report 2021.
“Our like-minded investors are reaffirming Creditfix’s mission to empower women in Pakistan through job creation,” said Mehvish Owais, Creditfix’s spokeswoman and shareholder. Promoting appropriate lending rates paves the path for other Fintechs, both domestic and international, to follow suit.”
CreditFix is a Fintech startup based in Pakistan that was formed in 2018. The company aims to provide a financial identity and financial services to the unbanked people in order to close the financing gap faced by millions of small and medium-sized businesses in the country – thereby boosting financial inclusion.
Insitor Partners is a Singapore-based impact investing firm with a mission to invest in entrepreneurs serving the next billion customers in low-income areas in rising Asian countries.