CreditBook, the Karachi-based fintech startup that helps merchants digitize bookkeeping and payments, raised $11 million in pre-Series A funding from Tiger Global, Better Tomorrow Ventures, Firstminute Capital, Banana Capital, VentureSouq, Ratio Ventures, and i2i Ventures.
Elevator Pitch: Bookkeeping and payments, all in one app.
Market: Pakistan’s retail sector is the fastest-growing, contributing almost 20% to the national GDP.
The sector employs 15% of the labor force, making it the second-largest employer in the country. The country has around 2 million merchants, including kiryanas, general stores, supermarkets, etc.
With a population of 220+ million, the market has massive potential. And in the last ten years, retail sales in Pakistan have nearly doubled.
Problem: Keeping ledgers on paper and dealing with low cash flow are challenges many merchants face.
They often operate on informal credit and wait to collect payments to pay for their next wholesale purchase.
Customers keep making purchases while promising to pay later. Sometimes it takes months for them to pay.
Solution: CreditBook offers a bookkeeping app for merchants to digitize their handwritten ledgers and get paid faster.
They can keep their ledger digitally and reconcile accounts automatically. And set up and send free payment reminders to prevent late payments and defaults.
- Merchants in 400+ cities and towns
- $2.4+ million transactions every month
- 10x YoY growth
- 98% customer satisfaction
You should know: CreditBook was founded in 2020 by Iman Jamall, Hisham Adamjee, and Hasib Malik.
Both Iman Jamall and Hasib Malik were named in the Forbes Asia 30 under 30 List for 2021 in the Social Impact category.
CreditBook raised $1.5 million in seed funding earlier this year. The total funding for the startup now stands at $12.5 million.
What’s interesting: CreditBook is Tiger Global’s first investment in a Pakistani startup. With $65+ billion under management, it’s one of the most prolific investors in billion-dollar startups.
Big picture: There is an opportunity of $45 billion in unmet financing needs for small businesses. CreditBook believes it can unlock the value and become a key player in the market.
Source for the retail market: Macro Pakistani