Pathao has raised $12 million in a pre-series B funding round as part of Bangladesh's largest consumer technology provider's strategic shift towards fintech.
This investment takes Pathao's total capital raised to upwards of $50 million -- the largest by a pre-series B start-up in Bangladesh, says a press release.
The round was led by the MENA-based VentureSouq, which has made "platform bets" across the Middle East, Africa & South Asia.
Additional investment came from Anchorless Bangladesh, Osiris Group, South Asia Tech, Openspace Ventures and other investors.
Having transformed into a profitable and financially robust entity over the past two years, Pathao now plans to holistically serve its customers with fintech offerings.
"Pathao is far more than a brand, or a suite of products -- it is a lifestyle. Just as it has radically transformed urban transportation, logistics and the gig economy, our efforts in fintech will reshape the financial landscape in Bangladesh" said Fahim Ahmed, Managing Director and CEO of Pathao.
The company, which is the market leader in logistics, ride-sharing and food delivery, has already made some strides in fintech with the introduction of Pathao Pay, a digital wallet, and Pay Later, Bangladesh's first and largest buy now pay later solution.
Pathao's machine learning-driven underwriting has already made the 'Pay Later' service gross profitable. The new funding will be instrumental in scaling these fintech offerings, refining their technology and broadening market reach.
"Our core users are the digital native youth of Bangladesh. The traditional banks are too primitive for them, and the other digital wallets are focused more on breadth targeting the underbanked. We're looking to build a tailored financial management ecosystem for our customers, the young professionals and tech-enabled entrepreneurs in Bangladesh," said Fahim Ahmed.
Pathao's fintech offerings are designed to provide personalised financial solutions to over 5 million young professionals and over 500,000 tech-enabled small businesses in Bangladesh, utilising cutting-edge technology to enhance user experience.
"Given Pathao's existing reach and trust in its markets and the calibre and integrity of its team, we believe Pathao will be a significant and positive player across multiple service lines for years to come. We certainly view the company as the strongest potential distribution platform for fintech products across Bangladesh, bar none," said Tammer Qaddumi, Co-Founder & General Partner at VentureSouq.
"Pathao is uniquely positioned to capitalize on Bangladesh's economic growth, offering unparalleled access to its rapidly evolving digital ecosystem. We believe it's the best investment for gaining macroeconomic exposure to the Bangladesh consumption story," added Rahat Ahmed, Founding Partner & CEO at Anchorless Bangladesh.
Since its inception in 2015, the company has served over 10 million customers and created more than 500,000 employment opportunities in Bangladesh's gig economy and small businesses.
