/EINPresswire.com/ — SINGAPORE, June 28, 2021 — Creditfix, a Pakistani Fintech business, has announced that it has raised an unknown sum of seed money from Insitor Partners Pte. Ltd., a venture capital firm. This is the impact investing firm’s first investment in Pakistan, according to the Singapore-based firm.
Pakistan remains one of the world’s largest unbanked countries, although the Fintech industry in Pakistan is rapidly expanding. CreditFix is a startup that is attempting to improve access to fundamental financial services in emerging economies.
The groundbreaking arrangement is the first of its kind in Pakistan’s startup environment, with the State Bank of Pakistan approving the first-ever convertible loan financing from a foreign investor into a Pakistani company (SBP). Local investors ACT Group and High Net Worth Individuals are also part of the unsecured convertible loan arrangement. In the presence of executives from Creditfix, Insitor Partners, Deosai Ventures, and ACT Group, the funding agreement was announced on June 16, 2021 in Karachi. StratLink, a financial consultancy firm specialising in emerging countries, has also aided Creditfix.
Creditfix was formed in 2018 to provide conventional and Shariah-based loan solutions and financial services, with a focus on Micro, Small, and Medium Enterprises (MSMEs) (MSME). Creditfix uses its mobile application platform to underwrite and extend asset-backed, productive loans ranging from USD 60 to USD 600, using modern technology such as Artificial Intelligence (AI) to lower the operating costs of disbursing loans.
Owaiz Zaidi, the CEO and Founder of Creditfix, emphasises the significance of the deal structure, which promises to expand Pakistan’s startup ecosystem’s foreign investment options:
“We are excited to collaborate with our investors who share our goal of profit with responsibility and are ready to demonstrate our Risk at Scale TM framework in the Pakistan and East African markets.”
Insitor Partners, a majority female-owned corporation, has a Pakistan Country Manager, Hammad Umer.
“We believe CreditFix’s underwriting process has the potential to revolutionise the way credit is supplied to micro and small businesses and self-employed individuals. Our mission is to make finance more affordable, faster, and egalitarian for people from all walks of life. The SBP played a key role in facilitating this transaction by obtaining special approval, paving the way for future foreign convertible loan deals. We are looking forward to announcing additional ecosystem investments.”
Mr. Umer has been collaborating with Creditfix on the implementation of a number of impact indicators and ESG frameworks in order to assess and track their progress.
The company’s Chief Investment Officer, Nicholas Lazos,
“Creditfix reaffirms our long-term commitment to Pakistan and is the first of many additional investments in the country’s most significant businesses. We’re excited to support a talented team and their novel approach to bringing financial services to the masses.”
“Creditfix is the only Fintech that combines a field-tested proprietary credit scoring model and technology platform with strong understanding of the consumer loan space,” says Shehryar Hydri, Managing Partner at Deosai Ventures. We’re delighted to help them scale during a historic boom for this area because their team has a unique founder market fit.”
The gender gap is one of the most significant issues in Pakistan when it comes to financial inclusion, with Pakistan recently ranking 153/156 on the World Economic Forum’s (WEF) Global Gender Gap Report 2021. “Our like-minded investors are consolidating Creditfix’s aim to empower women in Pakistan through job creation,” said Mehvish Owais, Creditfix’s spokeswoman and shareholder. Promoting ethical lending rates would open the path for other Fintechs to follow suit in the country and abroad.”