Embedded finance platform Neem has received Non-Banking Financing Company (NBFC) licence to strengthen its lending landscape through its embedded solutions in Pakistan.

The NBFC licence, which has been granted by the Securities and Exchange Commission of Pakistan (SECP), allows the firm to offer embedded lending solutions designed for specific industry segments including MSMEs.

Upon identifying underserved MSME sector as one of its primary focus area, Neem partnered with liquidity solutions provider Kuunda to develop unique product offerings.

With the partnership, Neem will finance stores of karyana in Pakistan. These stores will be embedded into distribution partners like OneLoad, DigiKhata and Udhaar Book. 

Neem co-founder Naeem Zamindar said: “Lending is one of the key pillars in the Neem vision of providing Financial Wellness to underserved communities. By partnering with specialized lending infrastructure players we are able to bring to market meaningful and customised offerings.

“Our initial focus is on the MSME sector, airtime lending and smartphone financing as principal use cases.”

Kuunda Pakistan CEO Jalal ul Haq said Kuunda and Neem are jointly working to address the needs of the underbanked in Pakistan.

Haq added: “Today, Neem’s NBFC license, together with Kuunda’s scoring and loan management platform, is providing tailored growth financing products for retailers, micro-merchants and agents across the country.”

Furthermore, Neem is developing embedded lending products across smartphone financing and airtime lending space.

In a press statement, Neem said: “Beyond the MSME sector, Neem is developing embedded lending products across airtime lending space and smartphone financing. In all of those, dynamic credit profiling, data insights and community-focused products are defining components of Neem’s embedded lending model.”