Abhi, a Pakistan-based lending startup, has raised $17 million in a Series A funding round, bringing the company’s valuation to $90 million, Bloomberg reported Tuesday (April 19).
The funding comes amid an increase in investor interest in Pakistan, with companies in that country raising more than $350 million in 2021. PYMNTS reported on the wave in June, noting that Abhi was among its recipients, taking in $2.1 million in seed funding.
Read more: Foreign Investors Pour Millions Into Pakistan’s FinTech Startups
Abhi offers an alternative to people asking their family, friends or employer for money to tide them over until their next payday, according to the report. It also provides financing for small- to medium-sized businesses (SMBs) to help them meet working capital requirements.
“This is the first time you’re able to get this access in the country,” CEO Omar Ansari said in an interview with Bloomberg. “As people and smaller companies get this access then it becomes something they want to keep using.”
Abhi said in the report its app takes less than 30 seconds and two clicks for users to access funds — which are automatically deducted from the customer’s next paycheck — with a flat 2% fee.
Ansari oversaw two funds at Morgan Stanley and helped with early-stage investments for FinTechs in several countries, according to the report. He also served as an adviser to VEF, which focuses on FinTechs in emerging markets.
Abhi has increased its user count from 200,000 since its last funding round in 2021 to 650,000 while onboarding more than 150 companies. Ansari said users are accessing 15% to 20% of their monthly pay with the platform, the report stated.
The Series A was led by Speedinvest, with participation from Global Ventures, VentureSouq, VEF, Sturgeon Capital, Rallycap, FJ Labs, Fatima Gobi, Sarmayacar and i2i Ventures.
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