KalPay, a leading Pakistani buy-now-pay-later (BNPL) fintech platform, has announced the successful closure of an early-stage funding round, securing over $1 million. This marks the first funding announcement of the year for the startup. The round was spearheaded by Orbit Startups, with participation from Super Capital VC, Bansea, and other investors. Although KalPay did not disclose the precise amount raised, it confirmed that the total exceeded $1 million.
Shershah Hassan, founder and CEO of KalPay, revealed that the funding comprised both equity and debt, and the target amount was achieved when accounting for the debt financing. KalPay’s previous financing round, concluded in January 2022, included investments from On Deck and Pinetree Partners.
KalPay operates across three verticals: BNPL for online shopping, the Rasayi vertical offering financing for phones, travel, and productive digital assets, and Taleem, which focuses on education financing. Hassan highlighted that the company collaborates with multiple financial institutions to provide consumer loans, noting that one-third of the new funding will be allocated to financing.
Acknowledging the presence of competitors in each vertical, Hassan remarked that the BNPL industry in Pakistan is still in its nascent stages, with ample market space for multiple companies. He admitted that the high interest rates have posed challenges, making lending products more expensive for end users amid the ongoing economic downturn.
Hassan elaborated that the funding was raised in tranches due to the challenging macroeconomic environment. He emphasised the importance of aligning with investors who share KalPay’s impact-focused vision, acknowledging the current skepticism about the Pakistani market and predicting a year or more before conditions stabilize.
On sustainability, Hassan noted that KalPay has achieved positive unit economics and reached EBITDA-level profitability. The recent investment will be used to scale operations across all verticals, with a particular focus on impact-based initiatives. He also mentioned that significant strategic partnerships are in progress, which will further enhance the company’s growth.
KalPay has formed partnerships with prominent companies such as Foodpanda and Careem, as well as educational institutions like LUMS and UCP. Hassan asserted that these partnerships have been instrumental in KalPay’s growth, especially within the B2B2C sales segment.
With this new funding, KalPay is poised to accelerate its expansion and solidify its position as a key player in the burgeoning BNPL industry in Pakistan.