Neem, an embedded finance platform in Pakistan, has secured an additional $4 million credit facility from South Africa-based DNI Group, a global investment firm operating in 32 countries and an existing partner/investor in Neem.
As per a statement on Tuesday, the credit facility will facilitate Neem, a Karachi-based startup, to expand Paymenow, its earned wage access solution, across Pakistan.
“This partnership marks a pivotal step in advancing financial wellness for Pakistan’s salaried workforce,” it added.
Neem said that with over 60 million employed workforce in Pakistan, many working in essential sectors face substantial financial pressure between paydays with limited financial tools available to assist.
The startup believes that Paymenow offers a Shariah-compliant alternative. “By enabling employees to access up to 50% of their salary when they need it most, Neem Paymenow provides a debt-free service to bridge financial gaps before payday,” it said.
“Our investment in Neem Paymenow aligns with our core principles of financial inclusion and impactful support to drive meaningful change,” Ziyaad Manie, Chief Strategy Officer of DNI Group, was quoted as saying.
“We’re thrilled to back Neem in scaling this unique solution that directly benefits people.”
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Neem believed that amid a slowdown in investment flows over the past year in Pakistan, the latest funding signals renewed confidence of foreign investors in Pakistan’s market.
“The partnership and investment from the DNI Group, a team of seasoned operators with global expertise, serve as a powerful testament to our market potential,” said Naeem Zamindar, co-founder of Neem.
“It showcases their confidence in the Neem Paymenow team’s strong execution capabilities, and, above all, our shared vision of empowering financial wellness for businesses and people in Pakistan,” he added.
The startup said that “this strategic investment not only supports Neem’s mission of financial wellness for all but also signals to the market the growing importance of ethical and inclusive financial solutions for underserved segments”.
In June 2023, DNI Group invested $1 million in Neem as part of a strategic partnership, with the aim of “fostering innovation and growth in the embedded finance space” and “transforming the financial landscape in Pakistan”.