ZoodPay, a Switzerland-based provider of buy now, pay later (BNPL) services that focuses on customers in the Middle East and Central Asia, has purchased Karachi, Pakistan-based Tez Financial Services, Magnitt reported Monday (May 23).
The FinTech firm made the acquisition to serve Pakistan residents who have no access to formal credit by leveraging its digital lending ecosystem.
ZoodPay offers an app for shoppers and merchants to use in the company’s online mall.
Tez calls itself “Pakistan’s first digital financial institution.” The company is licensed in Pakistan as a “non-bank finance company” and said it operates in more than 160 cities. Tez also offers tools for users to engage in short-term investments.
Humza Hussain and Naureen Hyat, Tez’s founders, said they started the company to provide access to financial services through customers’ phones.
According to Crunchbase, ZoodPay has raised $ 48 million in venture capital in three rounds between 2019 and November 2021. Investors include Sturgeon Capital, Zain Ventures and French Partners. Tez has raised $ 1.1 million.
Read more: ZoodPay, Network International Collab on BNPL Solutions in Jordan
In March, ZoodPay announced a new partnership with Network International to offer BNPL services.
The strategic collaboration saw ZoodPay enabling BNPL options for thousands of merchant partners via the partnership to let Jordanians buy products and pay in installments. At the time, Zoodpay was already offering the option on ZoodMall, its own marketplace, with online partners.