Karachi-based fintech Safepay received venture capital funding from the global financial technology platform Stripe.
The startup didn’t reveal the exact size of the deal but mentioned to MenaBytes that it’s a seven-figure (USD) amount alongside the participation of other local and international investors.
The round also includes Berlin-based Global Founders Capital (which invested last month in Bazaar ), US-based HOF Capital, Soma Capital, and Mantis Venture Capital, as well as Pakistani VC Fatima Gobi Ventures.
Safepay was founded in 2019 by Ziyad Parekh and Raza Naqvi and aimed to build digital payment solutions for Pakistani merchants.
Their beta product launched in 2019 and the two co-founders were able to scale quickly to provide online payment services to over 300 merchants in the country.
The services were taken offline a year later as the company initiated its expansion which requires working within a framework with other financial partners and the central bank of the country, stated its co-founders, speaking to MenaBytes.
The company’s founders also stated that the company will launch its services as soon as it has appropriate arrangements to facilitate payments through the right financial partners and with the State Bank of Pakistan.
Safepay plans to use funds raised to further develop its products, expand its team, and on regulatory compliance.
“We want to work in improving digital payment infrastructure in Pakistan to decrease the reliance on cash and other OTC transactions, regardless if this is in a business-to-customer, business-to-business or government-person context.
We feel we are in a strong position to develop innovative payment solutions to facilitate such transactions. Our ultimate goal is to increase the size of the online economy in Pakistan,” said Safepay’s co-founder Ziyad Parekh.
The founders of Safepay feel that Pakistan is finally emerging as an attractive market for tech investors around the world, “Credit has to be given to startups and local investors who’ve helped put the Pakistani startup ecosystem on the global map.”