Pakistan-based fintech PostEx has successfully raised $7.3 million in a pre-Series A funding round, led by Conjunction Capital. The round also saw participation from new investors such as Dash Ventures and Sanabil500, alongside existing backers including VSQ, FJ Labs, and Zayn VC.
Founded in 2020 by Muhammad Omer Khan, PostEx is a fintech company that provides e-commerce businesses with upfront payments and a robust delivery network. The company has previously secured $8.6 million in funding from prominent investors like Global Founder Capital, MSA Capital, and Shorooq Partners.
The fresh capital injection will be used to bolster PostEx’s market leadership in Pakistan and fuel its expansion into the GCC (Gulf Cooperation Council) region, allowing the company to introduce its services to new markets and customers.
PostEx operates on a unique hybrid model that combines fintech with logistics, offering e-commerce businesses immediate access to capital and an integrated logistics solution. This approach not only simplifies delivery operations but also helps mitigate cash flow challenges for online retailers. The company’s adaptable financing solutions are crucial for e-commerce businesses seeking to scale quickly and capitalize on emerging opportunities.
Over the past 18 months, PostEx has achieved significant milestones, including reaching an annual recurring revenue of $21 million, attaining profitability, and processing over four million transactions per month. Having established itself as a market leader in Pakistan within just three years of its inception, PostEx continues to disrupt the traditional finance and logistics sectors in a market ripe for growth. Pakistan’s $6 billion e-commerce industry currently represents just 1-2% of total retail transactions, compared to the global average of around 15%, indicating substantial growth potential.
Commenting on the latest funding round, Muhammad Omer Khan, CEO and Founder of PostEx, highlighted the challenges faced by e-commerce businesses in the GCC and Pakistan, noting that traditional financial institutions often fail to meet the needs of digital entrepreneurs. “Our mission at PostEx is to empower online sellers by providing them with the flexible and affordable funding solutions they need to grow their businesses through our advanced embedded logistics solution,” he said.
Kirill Kozhevnikov, Managing and Founding Partner at Conjunction Capital, emphasized the strategic importance of the Saudi Arabian market within the GCC. He stated, “Our investment in PostEx reflects our commitment to supporting their innovative approach to integrating fintech with logistics, which positions them uniquely to address the evolving needs of e-commerce businesses in this region.”
In 2022, PostEx expanded its footprint across Pakistan by acquiring the logistics service provider Call Courier. This latest funding round will further enable the company to continue its growth trajectory and drive advancements in the GCC market.
