Qistbazaar secures PKR 500m equity partnership with Bank Alfalah

By Leandra Monteiro

QistBazaar, a Pakistan-based Buy Now Pay Later (BNPL) FinTech, announces an equity and Shariah-Compliant embedded finance partnership with Bank Alfalah, one of Pakistan’s largest commercial banks.

The partnership is worth PKR 500 million ($1.7m) and includes Bank Alfalah taking a 7.2% equity stake in QistBazaar, as well as becoming the Company’s embedded lending partner.

Atif Bajwa, President and CEO of Bank Alfalah said, “Bank Alfalah is committed to working with partners to address 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 deal marks a significant step forward. This partnership aims to provide inventive financial solutions, creating new opportunities for growth and support for these underserved customers.”

QistBazaar, a Securities and Exchange Commission of Pakistan (SECP) licensed, BNPL platform will benefit from enhanced digital financing products, via Bank Alfalah, within its platform to offer embedded consumer durables financing on BNPL deepening its ability to serve customers with limited/no access to formal credit. The partnership will also enhance the overall customer experience, improving financial inclusion, and providing innovative solutions.

Arif Lakhani, CEO of QistBazaar, said, “QistBazaar has been on a mission to democratise 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 execute. We look forward to the future with great confidence.”

The transaction is a milestone for Pakistan’s FinTech landscape, as it is the first time a commercial bank has taken an equity stake in a BNPL FinTech.