Pathao has raised $12 million in a pre-series B funding round as part of Bangladesh's largest consumer technology provider's strategic shift towards fintech.
This investment takes Pathao's total capital raised to upwards of $50 million -- the largest by a pre-series B start-up in Bangladesh, says a statement.
The round was led by the MENA-based VentureSouq, which has made "platform bets" across the Middle East, Africa and South Asia. Additional investment came from Anchorless Bangladesh, Osiris Group, South Asia Tech, Openspace Ventures and other investors.
Having transformed into a profitable and financially robust entity over the past two years, Pathao now plans to holistically serve its customers with fintech offerings.
"Pathao is far more than a brand, or a suite of products -- it is a lifestyle. Just as it has radically transformed urban transportation, logistics and the gig economy, our efforts in fintech will reshape the financial landscape in Bangladesh," said Fahim Ahmed, Managing Director and CEO of Pathao.
The company, which is the market leader in logistics, ride-sharing and food delivery, has already made some strides in fintech with the introduction of Pathao Pay, a digital wallet, and Pay Later, Bangladesh's first and largest 'buy now pay later' solution.
Pathao's machine learning-driven underwriting has already made the 'Pay Later' service gross profitable. The new funding will be instrumental in scaling these fintech offerings, refining their technology and broadening market reach.
"Our core users are the digital native youth of Bangladesh. The traditional banks are too primitive for them, and the other digital wallets are focused more on breadth targeting the underbanked. We're looking to build a tailored financial management ecosystem for our customers, the young professionals and tech-enabled entrepreneurs in Bangladesh," said Fahim Ahmed.
Pathao's fintech offerings are designed to provide personalised financial solutions to over 5 million young professionals and over 500,000 tech-enabled small businesses in Bangladesh, utilising cutting-edge technology to enhance user experience.
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