Pakistani consumer lending fintech Tez is acquired by ZoodPay - MENA startups, innovation, and tech news

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Pakistani consumer lending fintech Tez is acquired by ZoodPay
tez has been acquired by
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Pakistani consumer lending fintech Tez is acquired by ZoodPay

ZoodPay, a purchase now pay later platform based in Switzerland that operates in many Middle Eastern and Central Asian markets, announced today that it has acquired Pakistani consumer financing startup Tez. The financial terms of the acquisition were not disclosed, but the announcement stated that it is the first M&A transaction in Pakistan’s nascent fintech sector.

 

Tez is a digital platform that provides nano-loans to Pakistan’s unbanked and underbanked population. It was founded in 2016 by Naureen Hyat and Humza Hussain. It offers personal loans up to PKR 10,000 ($50) that consumers can repay in instalments, according to the company’s website. For these loans, Tez charges a set one-time fee that varies from 10 to 20 percent depending on the loan amount and customer profile.

 

With the help of Zain Ventures and Sturgeon Capital, ZoodPay, which is currently available in Jordan, Iraq, Lebanon, Uzbekistan, and Kazakhstan, has raised close to $50 million. The acquisition of Tez will allow ZoodPay to offer its services in Pakistan.

“The company’s lending strategy is strengthened by three crucial components of digital infrastructure, including I Acquiring customers and merchants through its varied distribution channels, including its own e-commerce marketplace and network of retailers and partners, (ii) Deriving rich transactional data from its internal universe of fintech, e-commerce marketplace, and logistics, and (iii) Leveraging its proprietary credit scoring algorithms to assess credit risk and electronic payments.”

If ZoodPay intends to introduce its BNPL product in Pakistan is not yet evident.

 

 

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