KARACHI: Qist Bazaar, Pakistan's first and only Sharia-compliant BNPL (Buy Now Pay Later) fintech start-up, has disbursed loans worth Rs. 3.4 billion to 55,000 customers since its launch to bring the fundamental needs of Pakistanis within their reach.
Qist Bazaar, licensed by the Securities and Exchange Commission of Pakistan (SECP) as a Non-Bank Financial Company (NBFC), provides instalment-based payment solutions to unbanked and underbanked segments of the population.
During a media meet up on Wednesday, Arif Lakhani, Co-founder and CEO at Qist Bazaar informed that Qist Bazaar, established in November 2021, is a successful e-commerce start-up with 98 percent recovery ratio during the last three years. “We have disbursed about Rs 3.4 billion during the last three years and the default ratio is even less than the banking sector,” he informed.
This fintech enables Pakistanis from all walks of life to purchase essential goods such as mobile phones and home appliances through affordable monthly payments.
He said that Qist Bazaar’s primary focus is to serve the unbanked population of the country and need loans to enhance the living standards. Despite the immense potential in Pakistan's financial technology and e-commerce sectors, 155 million adult citizens remain unbanked, with no access to credit. Consequently, around 70 percent of Pakistanis are unable to benefit from BNPL services offered by other fintech platforms, which typically require credit cards, extensive documentation, and lengthy approval processes, he mentioned.
However, he said that Qist Bazaar has effectively overcome these barriers by eliminating the need for debit/credit cards and simplifying the application process, making it easier for all Pakistanis to access its services.
Lakhani informed that Qist Bazaar has recently secured $3.2 million in its Series-A funding round and the round was led by Indus Valley Capital, with participation from Gobi Partners holding $1.6 billion in assets under management (AUM). Bank Alfalah has already invested in Qist Bazaar.
Qist Bazaar is facilitating the middle class segment of the society and some 57 percent of Qist Bazaar’s customers earns less than Rs 45,000 per month, with 70 percent of all customers being under the age of 35 years and the most popular products include mobile phones, refurbished laptops, refrigerators, LED TVs, motorcycles, and ceiling fans, he mentioned.
Lakhani said that overall, fintech offers over 500 products on affordable monthly instalments, making them easily accessible to the masses. It operates on a hybrid model, providing personalized support through its digital team, 19 facilitation centres in Karachi, Lahore, Hyderabad, and Gujranwala and few women-only branches that cater specifically to female customers, ensuring they receive the assistance they need from women itself, he added.
He informed that Qist Bazaar’s purchasing process is hassle-free, with no complex verifications, extensive paperwork, or documentation fees. The platform offers Islamic Mowsawama flexible payment plans tailored to each customer’s budget, allowing them to spread payments over 6, 12, or 18 months. Additionally, Qist Bazaar provides free home delivery, with most orders delivered within 48 hours of purchase, whether made online or in-store.
The founders of Qist Bazaar are not only pioneers of BNPL in Pakistan, but they also introduced the concept of social guarantors in the mid-1980s and the co-founders' slogan, “Aam Aadmi Shareef hay” (The common man is honest), is more than just a phrase; it reflects the company’s vision, as seen in its low delinquency ratios, he added.
As part of its commitment to inclusivity, Qist Bazaar has also established digital branches exclusively for female customers Lakhani said and added that this initiative enables women to shop comfortably and securely from their homes, providing them with a convenient, reliable way to access the products they need.
Qist Bazaar is dedicated to democratizing purchasing power, particularly for socio-economically and technologically challenged individuals. Customers can browse and order from a wide selection of over 500 products across 15 categories and over 40 brands.
Copyright Business Recorder, 2024
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