Creditfix secures seed funding

KARACHI: Pakistani fintech startup Creditfix has secured an undisclosed amount of seed funding in a round led by venture capital fund, Insitor Partners Pte. Ltd, a statement said.

The Singapore-based impact investment firm confirmed this as their inaugural investment into Pakistan.

The landmark deal is the first-of-its-kind in Pakistan’s startup ecosystem, marking the first-ever convertible loan financing from an international investor into a Pakistani company to be approved by the State Bank of Pakistan (SBP). The unsecured convertible loan facility also has on board local investor ACT Group and high-net-worth Individuals. The financing arrangement was announced on June 16 in the presence of representatives from Creditfix, Insitor Partners, Deosai Ventures and ACT Group. Creditfix has also been assisted by StratLink, an emerging markets focused financial advisory company.

With over 100 million people in Pakistan remaining unbanked, Creditfix was founded in 2018 to offer conventional and Shariah-based lending solutions and financial services, particularly targeting Micro, Small, and Medium Enterprises (MSME). By adopting new technology such as Artificial Intelligence (AI) to reduce the operating cost of disbursing loans, Creditfix utilises its mobile application platform to underwrite and extend asset-backed, productive loans starting from $60 to $6000.