Fintech startup Tag amasses $12 million in Pakistan’s largest ever seed round

A Pakistani woman in Islamabad, Pakistan surfs webpage of fintech startup Tag on September 23, 2021. (AN Photo)
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Updated 23 September 2021
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Fintech startup Tag amasses $12 million in Pakistan’s largest ever seed round

  • The round valued Tag at $100 million, took just two weeks to close
  • Pakistani startups have attracted over $228 million investment in just first eight months of 2021

ISLAMABAD: Tag, a one-year-old Pakistani startup that offers banking and financial services, has raised over $12 million in what is now the largest ever seed financing round in Pakistan, the company said on Wednesday. 
Pakistan’s startup ecosystem has received a major boost this year, with local firms getting over $228 million in investment just in the first eight months of 2021, compared to $77 million in 2020, according to Ignite, a Pakistani government-owned non-profit company. 
Liberty City Ventures, Canaan Partners, Addition, Mantis and Banana Capital and others financed the round that brought Tag’s to-date raise to over $17.5 million. This was the first time many of these investors, including Lee Fixel’s Addition, have invested in a Pakistani startup. 
“With this round the value of Tag has reached $100 million,” Talal Ahmed Gondal, co-founder and chief executive officer of Tag, told Arab News without divulging more details. 
The round comes as the startup builds one of the crucial railroads for Pakistani users. “We are trying to become both Revolut and Paytm in Pakistan...,” the 29-year-old founder said. 
The startup partners with public and private firms to offer their employees banking services, including getting their salaries on the Tag account and Visa-powered virtual and physical cards. It also provides a range of business-to-consumer (B2C) offerings such as the ability to pay others online and top up utility bills that are available to any user in Pakistan who signs up to the platform. 
Gondal said signing up on Tag, which included verification of an individual’s identity, just took three minutes. 
“We eventually want to offer the complete set of banking and financial services to users in Pakistan,” he said. 




The picture shows prototype of the interface of the fintech application, Tag. (Photo courtesy: AP via Business wire)

Before the launch of Tag, Gondal worked as an investor in Europe. He said he had long decided to return to Pakistan and start a firm to serve people back home, but was waiting for the right moment. 
A number of young startups have made splashy funding announcements in recent weeks. Quick-commerce startup Airlift unveiled a record $85 million Series B round last month, followed by business-to-business (B2B) venture Bazaar’s record $30 million Series A round. 
Gondal said startups were finally having a moment in Pakistan. 
“Each country’s startup ecosystem goes through various waves,” he told US-based TechCrunch website on Wednesday. “In India, we saw e-commerce firms like Flipkart flourish in the first wave. Firms like Ola, Zomato and Swiggy and fintech firms like PhonePe and Paytm made inroads in the waves after that.” 
The Tag founder said he saw a similar trend in Berlin: “I had the conviction that a similar thing would play out in Pakistan.” 
Tag says it is now working to broaden its product offerings and hire talent to win the trust of the market. 
“Liberty City Ventures is proud to support a visionary leader like Talal in his efforts to expand financial inclusion for the underserved and underbanked,” Murtaza Akbar, managing partner at Liberty City Ventures, said in a statement. “We expect the world class team he has assembled at TAG to build a regional fintech powerhouse.” 
In June, Tag had closed $5.5 million pre-seed round led by Venture Capitals. It is authorized by the State Bank of Pakistan to operate as Electronic Money Institution (EMI) and plans to launch the country’s first digital bank. 


Islamabad facilitating thousands of stranded Pakistanis in Gulf amid Iran conflict, FM says

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Islamabad facilitating thousands of stranded Pakistanis in Gulf amid Iran conflict, FM says

  • Pakistani religious pilgrims, visitors are being evacuated via land routes due to airspace shutdowns
  • Foreign Minister Ishaq Dar says ‘our consistent message is de-escalation, restraint and return to dialogue’

ISLAMABAD: Pakistan’s Foreign Minister Ishaq Dar on Tuesday said that Islamabad was working round the clock to assist thousands of Pakistanis stranded in Arab Gulf countries, reiterating his country’s readiness to facilitate diplomatic efforts to de-escalate tensions in the Middle East.

Tensions in the region heightened on Saturday following coordinated strikes by the US and Israel against Iran, diminishing prospects of a peaceful settlement of Tehran’s long-running dispute with Western countries and Tel Aviv over its nuclear program.

Tehran subsequently targeted American bases in Gulf states, including the UAE, Bahrain, Qatar, Kuwait and Jordan, prompting their governments to issue condemnations. The Saudi foreign ministry on Tuesday condemned Iran’s drone attack on the US embassy building in Riyadh.

Describing the Gulf situation as “very fluid,” Dar said regional airspace shutdowns had forced Pakistani religious pilgrims and visitors in Gulf states, also home to 4.5 million Pakistani expatriates, to mostly rely on land routes for their exit.

“The safety of Pakistanis abroad and the sovereignty of Pakistan remain our foremost priorities... Our crisis management unit is operational 24 hours to facilitate the stranded Pakistanis,” he said at a media briefing in Islamabad on Tuesday, adding that Pakistani missions in Tehran, Zahedan, Mashhad, Riyadh, Jeddah, Abu Dhabi, Dubai, Doha, Kuwait City and Manama were actively assisting nationals.

“If someone’s visa is expiring, as a visitor, they’re are getting fully cooperated. Similarly, if people are transiting from Saudi Arabia to other countries by road, then the other Gulf countries are also facilitating and helping them.”

Around 35,000 Pakistanis were currently in Iran and evacuation through Azerbaijan remained another viable option for those in northern Iran. So far, 64 Pakistanis have crossed into Azerbaijan, with dozens already flown onward, including 42 who reached Lahore on March 2, according to Dar.

Flights between Pakistan and Azerbaijan remain operational and Baku is providing visa-on-arrival and logistical support to stranded Pakistani nationals.

Dar said 4,543 Pakistani visitors were stranded in the UAE and around 1,400 in Qatar due to the conflict and airspace disruptions, adding that Saudi Arabia, home to more than 2 million Pakistani expatriates, remained relatively stable, with partial air operations continuing via Oman.

Land corridors between Saudi Arabia, Bahrain, UAE and Qatar were being widely used and travelers were being allowed to transit by road, he said, thanking authorities in these countries for facilitating Pakistani nationals.

ISLAMABAD’S DIPLOMATIC EFFORTS FOR PEACE

The foreign minister said he had been in contact with foreign ministers from Turkiye, Iran, Saudi Arabia, Qatar, UAE and Oman as well as European Union representatives over the past three days to help de-escalate the tensions.

“Our consistent message is de-escalation, restraint and return to dialogue,” he said.

Prime Minister Shehbaz Sharif is personally overseeing the situation and has convened Pakistani parliamentary leaders from all parties for a detailed briefing, he added.

In discussions involving US Secretary of State Marco Rubio prior to the US-Israeli strikes, Dar said, both Oman and Islamabad had been considered potential venues for US-Iran talks and Pakistan had conveyed that it was “fully ready” to host negotiations.

“Islamabad is available for any mediation or facilitation,” he said, adding that Pakistan’s policy did not support a regime change in Iran and focused solely on dialogue and regional stability.