PostEx, a fintech startup, has announced that it raised $7.3 million in pre-series A funding round, which provides startups the necessary capital to further develop their business, it became known on Tuesday.
Pre-series A funding is an intermediate investment round between seed funding and series A, aimed at helping startups bridge the gap by refining their product and achieving key milestones before a larger series A round.
According to the press statement by the startup, “The proceeds will assist PostEx in consolidating its market leadership in Pakistan and support an aggressive expansion into the Gulf Cooperation Council (GCC) — where new markets and customers will have access to PostEx’s services.”
The round was led by Conjunction Capital, a global venture capital firm that is technology-centric, while other investors included Dash Ventures, Sanabil500, VSQ, FJ Labs, and Zayn VC.
The startup, according to the statement, utilises a hybrid model of fintech and logistics to provide instant access to capital, removing “conventional barriers and challenges of traditional financing methods”.
“Access to capital is critical for online businesses looking to scale; those with adaptable financing partnerships are strategically positioned to leverage opportunities as they arise, driving business success,” the statement read.
The country’s US$6 billion e-commerce sector accounts for just 1-2 per cent of total retail transactions, versus a global average of 15pc, the statement read.
The round follows “a very successful 18 months” for the startup meeting several financial and operational milestones, including an annual recurring revenue of $21 million.
Muhammad Omer Khan, chief executive of PostEx, highlighted, “While the GCC and Pakistan have a thriving and fast-growing e-commerce landscape, the reality is that legacy financial institutions don’t fulfil the needs of digital entrepreneurs and online businesses.”
He said that PostEx’s mission was to empower online sellers by providing access to the “right capital” for their businesses to grow.
Meanwhile, Kirill Kozhevnikov, managing and founding partner at Conjunction Capital, said that the firm’s investment in PostEx underscored “the strategic importance of the Saudi Arabian market as a key growth area within the GCC”.
