Neem, a Karachi-based embedded financial wellness platform, has raised $2.5 million in a seed funding round led by global and local investors, the startup announced on Tuesday.

The startup said that the latest funding will enable it to further support Pakistan’s underbanked communities - both individuals and businesses, which offers a market opportunity of $167 billion.

As per the company, the funding round was led by SparkLabs, Arif Habib Limited, Cordoba Logistics and Ventures, Taarah Ventures, My Asia VC, ConceptVines Ventures and Building Capital.

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“The embedded finance revolution that is taking place globally in financial services is about democratisation, personalisation and access to products and services at the point of experience. At Neem, we aim to provide solutions to customers when and where they need it,” said Nadeem Shaikh, co-founder at Neem.

Founded in 2019 by Shaikh, Vladimira Briestenska and Naeem Zamindar, Neem is built on the belief that financial inclusion requires a shift towards a more holistic approach catering for the full financial needs of people and businesses.

“This includes giving individuals and businesses control through payments; addressing their needs through credit; absorbing risk through access to insurance, and at the top of the financial wellness pyramid sits financial freedom through savings and investments,” read a statement.

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Sharing data from the State Bank of Pakistan, Neem said almost 53% of Pakistan’s adult population and 3.3 million MSMEs are currently financially excluded.

The startup said that its embedded finance platform includes two core offerings; a Banking as a Service (BaaS) platform and a lending platform.

“Neem’s BaaS platform allows partners to embed wallets and payments into their communities as well as offer financial products such as insurance and savings customised to the community’s needs. Whereas, Neem’s lending platform allows partners to provide tailored lending products for both consumers and MSMEs.”

The funding comes as Pakistan’s startup sector attracted a record amount of investment in 2021. While momentum was carried over to the current year, many have announced closing shop as well.

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