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Pakistani Startup Tez Financial Services gets $1.1 Million in Seed Funding

Islamabad: Tez Financial Services, the first fully digital Non-Bank Microfinance Company (NBMFC) focused on serving the unbanked and underbanked in Pakistan, today announced that it has raised USD$1.1 million in a seed round led by Omidyar Network, the impact investment firm established by Pierre Omidyar, the founder of eBay. Other investors on this round include Accion Venture Lab, the seed-stage investment initiative of global nonprofit Accion; and Planet N. Funds will be deployed to build the company’s credit portfolio, enhance its mobile technology platform, and to meet the regulatory NBMFC requirements.
“Our aim is to become the primary financial service provider for the unbanked and underbanked. Tez delivers a seamless experience for its customers, providing loans in under 15 minutes as opposed to the usual month timeline from local commercial banks. Soon, we will be able to process a life and health insurance claim in similar time,” explains Nadeem Hussain, co-founder and CEO of Tez.
In Pakistan, more than 50 percent of the population is unbanked, according to the World Bank. Many resort to using a variety of informal financial tools to manage their finances, but those can be unreliable, expensive, and inefficient. With more than one-third of the population living below the poverty line, minute fluctuations in cash flow could impair their ability to meet their day-to-day financial needs, such as paying bills or buying groceries. Leveraging the increased penetration of smartphones in the country, Tez aims to integrate the masses into the financial mainstream.

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