KARACHI: A Pakistani fintech firm announced on Friday it raised $11 million during in a recent funding round led by two international companies which have not invested in the country’s startup environment in the past.
The country’s startup companies have captured the attention of global venture capitalists in recent months, attracting over $300 million during the course of this year.
Experts believe Pakistan is likely to witness the emergence of its first “unicorn,” a startup company valued at $1 billion or more, amid rising global interest in local firms providing IT-enabled solutions.
CreditBook, which benefitted from the recent funding round, was launched in June 2020 to provide digital bookkeeping solutions to small business owners who previously relied on paper-based management of their commercial activities.
According to a statement circulated by the firm, its digital app is used in over 400 towns and cities, witnessing a massive increase in transacting users on the platform over the last year.
It has also been expanding its existing offerings that include cash flow management along with reporting and repayment reminders.
“Financial products and services have been designed in a way that overlooks the needs of small and medium sized businesses, but now technological and demographic trends are reinforcing each other in a positive manner,” said Iman Jamall, cofounder of CreditBook. “That’s what makes CreditBook’s timing so relevant.”
“For many, this is their first business management tool,” she added. “Once they see an improvement in their cash flows, they come back to us with a sense of confidence, often searching for new ways to grow their business through the app. The connection between finance and welfare doesn’t seem out of reach anymore.”
CreditBook generated $11 million in a round that was led by Tiger Global and FirstMinute Capital.
Its previous investors included Better Tomorrow Ventures, who led the earlier round, VentureSouq, Ratio Ventures and i2i Ventures who also took part in the current round.
Angel investors who participated in the new and oversubscribed round included Julian Shapiro, Turner Novak, Sriram Krishnan, and operators from companies such as AirBnB, Microsoft, Robinhood and Lazada.
“We are excited to partner with CreditBook and make Tiger Global’s first investment in Pakistan,” the fintech’s statement quoted John Curtis of Tiger Global as saying. “The investment is a testament to the incredible traction and vision demonstrated by the team.”
Sam Endacott of FirstMinute Capital expressed similar sentiment, saying his company was "incredibly pleased" to support a Pakistani startup.
“We have been studying the country and understand it is at an inflection point seen before in other emerging markets,” he said. “This coupled with the quality of the team … means CreditBook has the chance to build a category leader in Pakistan fintech.”
CreditBook’s chief executive officer Hasib Malik said his firm was trying to build “a one-stop solution for entrepreneurs to improve their financial outcomes in multiple areas of life.”
“This vision can only be achieved if we build it alongside some of the brightest people around the world,” he added. “As a remote first organization, we’ve already been successful in attracting good talent and will continue to focus on creating a culture for people to thrive.”
The CreditBook team has also built regulated financial services business and products in the past.
Its cofounder, Iman Jamall, is among a handful of female entrepreneurs who have chosen this startup niche.
