Karachi: QistBazaar, a leading Pakistan-based Buy Now Pay Later (BNPL) Fintech, announces a significant equity and Shariah-compliant embedded finance partnership with Bank Alfalah – one of Pakistan’s largest commercial banks.
The partnership is worth PKR 500 million ($1.7 million), and includes Bank Alfalah taking a 7.2% stake in QistBazaar, as well as becoming the company’s built-in lending partner.
The transaction is a milestone for Pakistan’s fintech landscape as it is the first time a commercial bank has taken a stake in a BNPL fintech.
QistBazaar is a fast growing, Securities and Exchange Commission of Pakistan (SECP) licensed, BNPL, non-banking financial companies (NBFCs) platform. The company caters to all Pakistanis; from those without a bank and with little or no financial history, up to banks at established institutions. It is unique in various ways, including that since day one of trading it has been EBITDA positive.
Since its inception in 2021, QistBazaar’s platform has delivered over 20,000 products to unbanked consumers: everything from mobile phones to refrigerators – available via affordable monthly payments. With over 30 years of historical data, spanning 250,000+ individuals, QistBazaar has revolutionized the scoring process for installment purchases. The company’s eligibility criteria is simple – “Every Pakistani”. Unlike other BNPLs, QistBazaar’s sales are on a 12-month schedule, and include an element of extra profit on each sale.
QistBazaar will leverage enhanced digital financing products, via Bank Alfalah, within its platform to offer built-in durable consumer finance at BNPL – deepening its ability to serve customers with limited/no access to formal credit. The partnership will also improve the overall customer experience, improve financial inclusion and offer innovative solutions.
Atif Bajwa, President and CEO of Bank Alfalah, commented:
“Bank Alfalah is committed to working with partners to meet the needs of customers with limited access to credit and lower purchasing power. Our collaboration with QistBazaar through an equity investment and Islamic-embedded financing agreement marks a significant step forward. This partnership aims to offer inventive financial solutions, create new opportunities for growth and support for these underserved customers.”
Arif Lakhani, CEO of QistBazaar said:
“QistBazaar has been on a mission to democratize purchasing power. In our first 18 months of existence, we have served over 17,000 Pakistanis – most of whom do not have bank accounts and could not have completed their purchases without going through us. Our milestone achievement with Bank Alfalah – coming in as our equity and embedded financing partner – and with their guidance and experience makes our work and mission much easier to accomplish. We look forward to the future with great confidence.”
The signing ceremony was attended by QistBazaar’s co-founders Arif Lakhani and Karim Gilani, plus other executives. Bank Alfalah’s senior management also attended, including Atif Bajwa, President and CEO; Aasim Wajid Jawad, Group Head of Strategy, Transformation, Customer Experience and Venture Capital Investments and Yahya Khan, Group Head of Digital Banking.
The Buy Now Pay Later (BNPL) facility is becoming increasingly popular among consumers due to its affordability, convenience and financial flexibility, while offering a cost-effective solution to traditional modes of purchase in times of high interest rates.
