PostEx, a fintech startup disrupting cash-on-delivery payments, raised $7.1 million in seed funding from Global Founders Capital, FJ Labs, ru-Net, MSA Capital, VentureSouq, Alma Capital, Zayn Capital, and Shorooq Partners.
PostEx raised an initial seed round of $1.5 million in October. With this funding, PostEx has raised a total of $8.6 million.
Elevator Pitch: E-commerce sellers receive instant payment on cash-on-delivery orders.
Make me care: Pakistan has a predominantly cash-based economy. Over 90% of e-commerce transactions in the country are cash-on-delivery. Sellers have to wait until the order is shipped and delivered to get paid.
Even after the order has been delivered and cash-on-delivery has been collected, it can take a significant amount of time for the seller to receive payment. And since banks refrain from taking risks, cash flow financing is limited.
That’s the value proposition of PostEx.
In addition to supplying merchants with upfront cash for their deliveries, it also provides them with funds to run and grow their businesses.
With PostEx’s range of customized financial products, sellers can grow faster and more economical compared to traditional financial providers that underserve the segment.
You should know: PostEx was founded in 2019 by Omer Khan, Saad Mahmood, Babar Razzaq, and Adil Naseem.
It plans on using the fresh round of funding to expand into 15 to 20 more cities in Pakistan.
Zoom Out: E-commerce logistics is becoming increasingly attractive to local and foreign investors. PostEx’s competition in the space includes Rider, Swyft, and Trax.