Abhi, a Pakistani Fintech, Launches Region’s First Sukuk

Abhi, a revolutionary fintech platform based in Pakistan, has made a significant breakthrough by issuing the region’s first-ever fintech Sukuk bond. This move represents a new chapter for fintech startups, offering an innovative funding channel at a time when venture capital investments are dwindling. The Karachi-based fintech startup secured a substantial 2 billion rupees ($6.8 million) through the Sukuk bond issuance, marking an unprecedented achievement for fintech in the Middle East, Africa, and Pakistan region, according to CEO and co-founder, Omair Ansari.

In the throes of a severe economic downturn, Pakistan’s startups are navigating a challenging financial landscape. Amidst this funding crisis, several companies such as Vitol-backed VavaCars and trucking startup Trella have withdrawn their operations from Pakistan. Concurrently, Dubai-based Swvl Holdings has suspended its daily rides, and Uber’s Careem has halted its food delivery service.

Despite these headwinds, Abhi’s fintech platform, offering vital financial services like working capital for companies and early salary access for employees, has seen remarkable growth. After launching only a year ago, Abhi achieved a $90 million valuation and expanded its fintech services to the United Arab Emirates, demonstrating the potential of fintech in emerging markets.

Pakistan is currently facing severe inflation, the highest in Asia, and is striving to secure an International Monetary Fund loan, crucial for avoiding a default. In these challenging economic conditions, fintech solutions like Abhi are becoming increasingly important, as evidenced by the growing number of individuals and companies turning to the platform for financial solutions.

Omair Ansari is confident that the newly raised funding through the Sukuk bond will help alleviate the financial strain on struggling companies. He believes the fintech market in Pakistan remains largely untapped, as traditional banks have retreated from lending to the real economy. This gap in the market presents a significant growth opportunity for fintech platforms like Abhi.

Ansari’s background includes managing investment funds at Morgan Stanley, with a focus on consumer companies and fintech in emerging and frontier markets. His expertise lies in early-stage investments in fintech firms across diverse markets like China and Brazil. He also served as an advisor to VEF, a firm specializing in fintech investments in frontier and emerging markets.