Lahore, Pakistan – August 20, 2024: PostEx, one of Pakistan’s leading fintech companies, has announced the successful completion of a US$7.3 million pre-Series A funding round. The round was led by Conjunction Capital, a global venture capital firm focused on technology investments. Additional participants included new investors Dash Ventures and Sanabil500, alongside existing investors VSQ, FJ Labs, and Zayn VC.
The funds raised will support PostEx in consolidating its market leadership in Pakistan and facilitate its aggressive expansion into the GCC region. This expansion will introduce PostEx’s innovative services to new markets and customers across the Gulf.
PostEx operates through a unique hybrid model that combines fintech and logistics. The company provides instant access to capital, overcoming the conventional barriers and challenges posed by traditional financing methods. Its embedded logistics solution enhances the efficiency of ecommerce clients’ delivery operations, addressing cash flow issues faced by customers. Access to capital is critical for online businesses seeking to scale, and those with adaptable financing partnerships are strategically positioned to capitalize on emerging opportunities, driving business success.
PostEx has been at the forefront of disrupting Pakistan’s finance and logistics industries, benefiting from a favorable market environment with substantial growth potential. Despite Pakistan’s ecommerce sector being valued at US$6 billion, it accounts for just 1-2% of total retail transactions, compared to a global average of approximately 15%.
This funding round follows a period of significant achievements for PostEx, during which the company met several financial and operational milestones. Over the past 18 months, PostEx surpassed an Annual Recurring Revenue (ARR) of $21 million, achieved profitability, and now processes over four million transactions each month. The company has maintained its position as the market leader for the past two years, experiencing rapid growth since its inception less than 36 months ago.
Muhammad Omer Khan, CEO and Founder of PostEx, stated:
“The GCC and Pakistan boast a thriving and fast-growing ecommerce landscape. However, the reality is that legacy financial institutions fail to meet the needs of digital entrepreneurs and online businesses. Ecommerce businesses require flexible and affordable funding solutions, and at PostEx, our mission is to empower online sellers by addressing their most critical challenge: access to the right capital to grow their business through our advanced embedded logistics solution.”
Kirill Kozhevnikov, Managing and Founding Partner at Conjunction Capital, added:
“Our investment in PostEx highlights the strategic importance of the Saudi Arabian market as a key growth area within the GCC. PostEx’s innovative approach to integrating fintech with logistics positions them uniquely to meet the evolving needs of e-commerce businesses in this region. We are committed to supporting their expansion and driving further advancements in the market.”
In 2022, PostEx acquired Call Courier, a Pakistani logistics service provider, significantly expanding its footprint across the country. Prior to its pre-Series A round, PostEx had raised US$8.6 million from investors including Global Founder Capital, MSA Capital, and Shorooq Partners.
About PostEx
Founded in 2020, PostEx has rapidly grown to become one of Pakistan’s leading regulated fintech companies and the country’s top ecommerce logistics provider. The company offers upfront payments to ecommerce businesses along with a reliable delivery network, providing a critical solution for ecommerce businesses looking to scale and secure more consistent cash flow.
With over 40% of Pakistan’s population without access to bank accounts—and where skepticism of digital payments persists—PostEx plays a vital role in the growth of Pakistan’s ecommerce sector. The company aims to bring its unique approach to new markets as it continues to scale.
In the past 12 months, PostEx surpassed half a billion dollars in Gross Merchandise Value (GMV) and now serves over 15,000 active online stores with a client retention rate exceeding 90%. As Pakistan and the GCC region embrace the digital transition in commerce, PostEx is well-positioned for aggressive scaling.
