Tag, a one-year-old startup in Pakistan that provides banking and financial services, has raised more than $12 million in what is now the largest seed financing round in the region.
The round was funded by Liberty City Ventures, Canaan Partners, Addition, Mantis, and Banana Capital, among others, bringing the total raised by YC-backed Tag to nearly $17.5 million. Many of these investors, like Lee Fixel’s Addition, are making their first investment in a Pakistani firm.
Tag is valued at $100 million in the round, according to two people familiar with the matter. The investor’s enthusiasm for Tag comes as the business constructs one of Pakistan’s most important railroads for consumers. “We’re aiming to be Revolut and Paytm in in Pakistan,” the founder said.
Tag partners with public and private companies to provide banking services to its employees, such as depositing their salary into a Tag account and issuing Visa-powered virtual and real cards. He claims that signing up for Tag, which includes some identification verification, takes only three minutes.
It also offers a variety of B2C services, such as the ability to pay people online and top-up utility bills, to any user in Pakistan who registers on the platform.
“In the end, we want to provide users in Pakistan with a full range of banking and financial services,” he stated.
Gondal spent seven years as an investor in Europe before founding Tag. He stated that he had long planned to return to Pakistan and create a business serving the people of his homeland, but was awaiting the appropriate opportunity.