Pakistani fintech eyes UAE market
“This is the era in which almost every institution will gravitate towards fintech. We can take the examples of Facebook, TikTok, FoodPanda or Careem, all of which now have their own wallets,” says Syed Nadeem Hussain, Chairman PFN. photo: file
Approximately two and a half years ago, Muhammad Murad, a private security guard, travelled from Karachi to upper Sindh to spend his Eid holidays in his hometown. Upon his arrival, he faced a daunting challenge when his roof collapsed. Fortunately, there were no casualties, but he lacked the savings required for repairs. Sitting in a corner of his damaged home, he contemplated the days until his next salary, realising he was registered with the fintech platform Abhi, which allowed him to access his earned salary at any time.
Abhi’s Chief Commercial Officer, Mohammad Zaidi, shared this pivotal moment in an exclusive interview with The Express Tribune. “That was the very first transaction on our platform that formally kicked start our journey,” he said. He clarified that employees of companies registered with Abhi can access their earned wages daily, weekly, or monthly, unlike traditional monthly salary disbursements.
“It’s important to note that we do not offer advance salaries,” Zaidi emphasised. Instead, Abhi accumulates employees’ salaries daily until they choose to withdraw them.
Over 450 companies, including industry leaders in textiles, e-commerce, finance (including banks), FMCGs, and startups, have adopted Abhi’s earned wage access (EWA) feature. Additionally, they are leveraging Abhi’s invoice-based borrowing services to meet future cash flow needs, particularly for working capital.
Read Pakistani fintech AdalFi raises $7.5m to tackle lending challenges
Zaidi disclosed that approximately 750,000 to 800,000 employees from these companies are registered with Abhi to access their salaries, with around 300,000 actively utilising the EWA functionality.
The availability of earned wages before month-end enables employees to address emergency needs, purchase groceries, and settle utility bills promptly, avoiding late payment charges, he said.
Abhi has successfully secured equity funding amounting to $22 million through various funding rounds, including pre-seed and series ‘A’ fundraising efforts. In May 2023, the company launched a sukuk worth Rs2 billion to fulfil its clients’ financial requirements and facilitate ongoing expansion efforts. Abhi’s valuation has surged to $90 million over the past two years.
To meet customer demands, Abhi has established credit lines with banks. Many key executives at Abhi have extensive experience in leading banks, enabling them to understand the financial requirements of the corporate sector and develop products accordingly.
Fintechs like Abhi have gained traction in developed countries, with platforms like Payactiv in the US, Wagestream in the UK, and MyPayNow in Australia replacing outdated monthly pay systems.
Abhi CCO Zaidi announced the fintech’s intention to expand globally, following its recent incubation in Abu Dhabi, with plans to serve the UAE in the near future.
Moreover, numerous companies are turning to Abhi to secure funds for their future cash flow requirements. The process involves uploading invoices to Abhi’s platform for validation before acquiring a credit line.
Customers also have access to the Abhi vendor portal, enabling them to make direct payments to vendors using approved credit.
Abhi additionally offers a product called ‘Payroll Processing’, allowing companies to pay salaries to their employees with accounts in various banks or digital wallets across the country.
Published in The Express Tribune, September 24th, 2023.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.