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PostEx could be setting up shop in Saudi in a few days as part of its GCC expansion push, according to a press release (pdf). The Pakistan-based fintech and logistics company PostEx is initially concentrating its GCC expansion efforts in Saudi Arabia and the UAE, CEO Omer Khan told Enterprise UAE last week. The company launched a pilot in Saudi Arabia with online merchants and local financing partners to fine-tune its offering before a full market entry.
Background: The startup secured USD 7.3 mn in pre-series A funding round last week. The investment will allow PostEx to expand its operations in the GCC and double down its presence in Pakistan. The funding round was led by Dubai-based Conjunction Capital, with participation from Saudi Arabia’s Sanabil 500, Jordan’s Dash Ventures, and existing investors VSQ, FJ Labs, and Zayn VC.
More on PostEx: The Punjab-based company offers up-front payments for cash-on-delivery e-commerce orders placed by suppliers. PostEx serves 15k e-commerce merchants, with 80% using both its payment and logistics solutions, while the rest rely solely on its logistics services, according to Khan. The company became profitable over the past 18 months, after crossing annual recurring revenue of USD 21 mn, the statement said.
PostEx provides funding exclusively to e-commerce businesses that use its logistics network, a strategy that helped to maintain the company’s non-performing loan rate below 0.03%, according to Khan. The company covers around 60-70% of order values, with the remaining balance provided after delivery and payment. Financing levels are determined by the size of the business and the scale of its orders.
Investors ❤️ PostEx: The startup raised USD 1.5 mn in a previous seed round in 2021 led by MSA Capital. Shorooq Partners, Zayn Capital, VentureSouq, PNO Ventures, +92 Ventures, and Arbisoft’s CEO Yasser Bashir also participated in the funding round.
