Neem, a Karachi-based embedded finance platform, has raised an additional $1 million in seed funding from DNI Group, a South African investment firm.
This brings Neem’s total funding to $3.5 million, including its earlier $2.5 million seed round.
Make me care: Financial inclusion is a big problem in Pakistan, with over 100 million people without access to essential banking services. Those numbers put Pakistan as the third-largest unbanked country in the world.
Many startups try to bridge this gap by providing banking services to underbanked communities, but the current approach does not address core challenges.
A bank account is a good start, but it’s just the beginning. Besides storing money, it has no real benefits for most people.
Small businesses and newly banked individuals often have trouble getting bank loans. It’s mainly because they can’t meet the collateral requirements. In addition, the financial ecosystem doesn’t offer them insurance or other vital financial products.
That’s where startups like Neem make a difference by looking beyond banking access and ensuring a holistic approach to financial inclusion.
Tell me more: Neem provides financial wellness services to the underbanked through two main products: Banking-as-a-Service (BaaS) and lending services.
With BaaS, businesses can integrate wallets and payments and offer insurance and savings products. Their lending services let them offer customized loans to small businesses and consumers.
The combination of investment plus a partnership with DNI Group and direct access to their portfolio of startups will allow Neem to accelerate product development and accessibility.
You should know: Neem was founded in 2019 by Nadeem Shaikh, Vladimira Briestenska, and Naeem Zamindar.
DNI Group, with its technology arm led by CEO Ross Venter, operates in 28 countries and focuses on assets that can leverage technology in telecommunications, banking, and retail sectors.
Zoom out: Neem’s strategic investment partnership is a win for the startup and a testament to Pakistan’s fintech ecosystem’s potential. With Neem’s sights on global expansion, this collaboration could play a key role in transforming the financial landscape in emerging markets.
