The largest e-commerce service provider in Pakistan has been created after Pakistani fintech PostEx acquired logistics business Call Courier. With more than 8,000 merchants serving more than 1.3 million users across 500 locations in Pakistan, PostEx is on track to have a monthly loan book of more than $12 million.
Call Courier will now be a wholly-owned subsidiary of the group as a result of the acquisition. In a nation where more than 90% of e-commerce payments are still made in cash, PostEx offers services including upfront payments and revenue-based financing for e-commerce sellers and SMEs.
According to the World Bank, nearly 100 million adults in Pakistan do not have a bank account, according to PostEx co-founder and CEO Omer Khan. As a result, firms don’t have enough cash flow and have limited access to working capital. On the other side, customers are leery of digital transactions, and many still prefer to pay cash on delivery for online orders even when they have bank accounts.
But because they have a greater percentage of door-to-door rejection, cash on delivery presents a challenge for e-commerce companies. Additionally, as opposed to a few days for digital payments, funds from cash on delivery purchases can take up to two to three weeks to be put into a business banking account.
The founding team of PostEx concluded that there was a chance to create a trustworthy logistics service provider while also receiving up-front money. Online merchants benefit from greater cash flow and the elimination of lengthy payment cycles thanks to upfront payments.
According to Khan, “We’re out there making it easier for businesses to reach out to more customers, take care of their delivery needs, and give them upfront liquidity.” For tiny firms that depend on every dollar to survive, this is crucial.
Khan claims that PostEx stands out from the competition because of its unique blend of logistics and fintech. In addition to Zayn Capital, Global Founder Capital, MSA Capital, RTP, FJ Labs, and Shorooq, it has raised $8.6 million so far.
The acquisition “shows the importance of close collaboration between fintech and logistics, highlighting the importance of access to capital,” said Senator Afnan Ullah Khan, a member of the Prime Minister’s IT Task Force Committee. With this acquisition, PostEx becomes the industry’s biggest e-commerce service provider, demonstrating the ability of entrepreneurs to take on market leaders. It’s encouraging to observe creative approaches to persistent issues.