Pakistan’s Abhi raises $2 million seed: you have access to your wage ‘abhi’ - MENA startups, innovation, and tech news

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Pakistan’s Abhi raises $2 million seed: you have access to your wage ‘abhi’
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Pakistan’s Abhi raises $2 million seed: you have access to your wage ‘abhi’

Abhi, a Karachi-based startup raises $2 million to launch Salary Advance App for employees.

Investors in the seed round

The funding round was led by Vostok Emerging Finance, the emerging market fintech investor, andSarmayacar, the local lead along withseveral international and regional investors including i2i Ventures, Zayn Capital, and Village Global. The upcoming batch of Y Combinator is all set to accept the startup, it is the second Pakistani fintech that has been accepted for YC’Ss next batch.

Omar and Ali’s vision

In Pakistan, many people are living with limited or no savings. If suddenly unemployment hits, there will be agreat financial risk as they will have exhausted their salaries on house expenses, bill payments, and emergency expenses. Omair Ansari and Ali Ladubhai, founders of Abhi, plan to bring about a change in the way people spend their money, with an aim to become the first and largest financial wellness platform in Pakistan.

Giving shape to the vision: launching the app

Omair Ansari believes that financial security and access to credit are basic human rights and his startup works towards providing that to all its customers. Their goal is to computerize consumer credit, untangle the knots in the manual payments process and be of support to the customers when they need them the most. Omar and Ali were quick to realize the need to have a faster wage access product that would allow people to access digital finance, along with a knowledge center to educate them about the responsible use of personal finance to their benefit. Their single financial app will allow customers to conduct all financial transactions.

How Abhi offers help

Abhi allows employees of its partners to withdraw their accrued wages as and when they want, through its web or mobile app. For this, Shariah-compliant will be charging employees a small transaction fee and will be entirely free for employers. It will have no impact on the employers’ balance sheet as the advances are backed by Abhi. If employees take an advance, the repayments and fee will be automatically deducted from their monthly salary before it gets paid by the employer.

Long term objectives

Abhiintendsto channel this investment into developing its services. It plans to expand its services to markets in Africa, GCC, and South Asia, by 2023. It has signed an MoU with 20 companies and aims to incorporate their respective labor force model to upgrade its salary advance startup for the long run.

Not even 2 million people in Pakistan have access to formal credit. Abhi’s vision is a positive step towards improving the financial wellness of the average Pakistani. We are sure that the financial access will be broadened in one of the largest unexplored markets in the world, with the launch of a pioneering business.

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