Taro Technologies, a Pakistani fintech firm, has raised $3.5 million in pre-seed capital from strategic partners and angel investors to establish a Buy-Now, Pay-Later (BNPL) venture in the country. Taro has teamed with Dubai-based Cashew Payments – a BNPL leader in the Gulf Cooperation Council (GCC) – as part of its pre-seed investment to speed its 2022 Q1 launch and expansion.
Mustafa Khan, CEO of Taro and former Silicon Valley Apple engineer, has stressed that this partnership will enable Taro to be an established player straight out of the gate, stating: “Our collaboration with Cashew provides critical insights into risk, merchant acquisition, operations, and customer retention. Those insights paired with support from their experienced and accomplished leadership team position us for a strong launch and to quickly dominate the market.”
Ammar Afif, CEO of cashew, said: “We are delighted to partner with Taro, in providing ‘Buy now, Pay later’ solutions for merchants and consumers in Pakistan,” Afif continued. “As we’ve grown our business in the GCC, we recognized the need for retailers in Pakistan to have a seamless way of offering flexible payment options to consumers in multiple industries. Through our partnership with Taro, all retailers in Pakistan can soon rapidly activate Taro’s installment payments for consumers across all channels online and offline.”
While the GCC and Pakistan have strong relations, GCC lessons will need to be modified for Pakistan before they can be successfully utilized locally. As a result, Taro CEO Mustafa Khan has been busy growing his local network, presently based in Lahore.
“To prime our Q1 launch, we’ve also been busy on the ground in Lahore hiring a talented core team with significant fintech expertise. Along with our core team, we’ve arranged partnerships with local financial and technical firms that will ensure a strong and successful launch.” – Mustafa Khan
Pakistan’s e-commerce business grew significantly in fiscal year 2021, with a total spend of roughly US$7.2 billion. Taro aims to make credit more accessible to all Pakistanis, enabling for more access to e-commerce shops. The company intends to grow its operations across the country and, eventually, internationally.