Thursday Feb 11, 2021
Pakistani startup Safepay has managed to raised seed fund of seven figures (USD) from global financial technology platform company Stripe and others reported MENAbytes on Thursday.
The Karachi-based startup told the publication that they were able to raise funds in seven figures but did not disclose the exact amount that they were able to accumulate from local and international investors.
Apart from Stripe, the companies involved in funding the startup include Berlin-based Global Founders Capital, US-based HOF Capital, Soma Capital, and Mantis Venture Capital, as well as Pakistani VC Fatima Gobi Ventures.
The company was founded in 2019 by Ziyad Parekh and Raza Naqvi hoping to build digital payments solutions for Pakistani merchants.
The duo had launched their beta product in 2019 and was quickly able to provide online payment services to more than 300 merchants in Pakistan.
The co-founders told the publication that they had to take their services down a year after the launch as they initiated Safepay’s expansion which required them to work within a framework with other financial partners and the State Bank of Pakistan.
The duo told MENAbytes that they will launch their services once again after appropriate arrangements to facilitate payments through the right financial partners and with the State Bank of Pakistan are finalised.
“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 told the tech publication.
Stripe’s business lead for the Asia Pacific Noah Pepper said: “The Safepay team’s solutions will be an important contribution to the future of Pakistan’s economy. We love backing founders who really know their markets and have the vision to help local businesses. Their commitment to increase digital payments in Pakistan will become even more vital as Pakistan continues to pursue a fully digital economy and increases its role in global trade.”
Raza Naqvi, the co-founder of Safepay, in a statement to MENAbytes, said, “The choice of backers reflects a combination of funds that already have links with other businesses in the market and that are bullish on the entrepreneurial space in Pakistan. Backing from Stripe, in particular, will provide us with unique guidance towards becoming a leading technology provider, building world-class products in the context of local payments and commerce.”