Mahaana Wealth recently closed its $2.1 million pre-seed round, which will directly contribute to meeting the regulatory capital requirements. Mahaana Wealth recently secured regulatory approvals from the Securities and Exchange Commission of Pakistan to introduce technology-led investment management in Pakistan.
Vostok Emerging Finance (Sweden), SparkLabs Group (Korea & Hong Kong), and regional strategic partner IGI Holdings took the lead in the round (JV Partner of Nestle in Pakistan). Mahaana, a graduate of Y Combinator’s W22 batch, received its initial funding from Mattias Martinsson (Founder of Tundra Fonder).
“The company sees opportunities for every person in Pakistan to create a financial security net in the form of building their savings & retirement funds,” said Muhammad Shamoon Tariq, the founder of Mahaana and former partner of Tundra Fonder. “In a country where more than 50% of the population is under debt and spends 30% of their monthly income on repaying debts (Sweden).
We are glad we participated in the consultations and are now prepared to make that a reality. It is encouraging to see SECP taking the necessary policy reforms and introducing new license categories, such as digital asset management and digital investment advisors, to get away with the regulatory bottlenecks restricting individual retirement and saving accounts.
The goal of Mahaana is to use cutting-edge financial technology to build a platform that will allow Pakistan’s 50+ million working-class people to better invest their retirement funds in light of their particular situation. The 401(k) plan in the US and the Swedish savings and pension model have both been in use for many years, but Pakistan trails far behind with just about 250,000 individual investors (0.02% population penetration), compared to 6 million in Sweden (60% penetration).
“The savings revolution in Sweden took place in the 1980s and 1990s, and it was crucial to achieving our status as a welfare state. Pakistan currently has a fantastic chance that it has to seize given its low savings rate and young population, according to Mattias Martinsson, founder of Tundra and the company’s early investor in Mahaana.
“By encouraging private savings now, Pakistan can ensure that the state is not overburdened when today’s youth retire in 30 years. I’m hoping Mahaana can play a significant part in ensuring that this chance is not missed. Since I have known and collaborated with Shamoon for 8 years, I am at a loss for who would be a better choice to lead Mahaana on its critical future mission, he continued.
Lack of knowledge, regulatory obstacles, and lack of confidence in the financial system are the key barriers to financial inclusion. The business has actively collaborated with the regulator to alter laws limiting financial inclusion, and it is in a strong position to play a significant role in Pakistan’s transition to responsible wealth and asset management by putting up creative, safe, and ethical savings products.
According to David Nangle, CEO of VEF, “Mahaana is addressing one of the most significant long-term financial issues that exist in Pakistan today with savings and pensions. We are proud to support Shamoon and his team in this scale venture and that Mahaana’s success will be good for both the users of its platform and Pakistan as a whole.”
The financial infrastructure of IGI Insurance has built up capabilities that the company will be utilizing. “IGI is a crucial local partner of Mahaana and is more than just a key investor. IGI Insurance, IGI Securities, and a digital wealth management firm like Mahaana, which has a staff with a track record of fund management in international markets, have clear synergies, according to Tahir Masaud, CEO of IGI Holdings.