Pakistani startup PostEx, a financial and logistics services provider for online merchants, is expanding into new markets, starting with Saudi Arabia this year, after securing $7.3 million in funding.
“We want to disrupt other markets because we see the gap”
E-commerce in Pakistan has grown 50% in the last year, with PostEx contributing to this growth. However, online merchants face challenges due to 95% of transactions being cash-on-delivery, leading to working capital issues. PostEx addresses this by offering upfront payments and logistics services, settling transactions within 10-15 days.
PostEx has maintained non-performing loans below 0.03% by controlling fund flow and providing credit only with logistics services. Of its 15,000 active merchants, 80% use upfront payments with logistics, while 20% use only logistics services.
The startup has expanded its logistics footprint in Pakistan by acquiring Call Courier and plans to enter Saudi Arabia in the next three months. It also plans to raise another $15 million to further expand in the new market. PostEx is testing its platform in the UAE and plans to launch there after cracking the Saudi Arabian market.
With the new funding, PostEx aims to expand its market presence beyond Saudi Arabia to the UAE. The funding round was led by Conjunction Capital, with participation from Dash Ventures, Sanabil 500, and existing investors VSQ, FJ Labs, and Zayn VC. This brings the total funding raised by PostEx to $15.9 million.
In Saudi Arabia, PostEx will apply for a financing license with the Saudi Central Bank and has already started a pilot with local financing partners. In Pakistan, PostEx plans to expand its headcount from 6,500 to 9,000 by year-end and is testing a digital payments service for online merchants.
Khan stated, “There is no cost of acquisition… we’re focusing on healthier margins for profitability… we’re growing 10–15% month-on-month.” PostEx has achieved an annual recurring revenue rate of $21 million, with four million monthly transactions, and projects surpassing $25 million by year-end.
