Swiss digital lending platform ZoodPay has forayed into Pakistan by acquiring Tez Financial Services (Tez) for an undisclosed sum.
The acquired firm is based in Karachi and is licenced as a non-bank financial company backed by the likes of Planet N, Flourish Ventures (Omidyar Network) and Accion.
It operates in the consumer banking space by offering nano-loans to underserved customers across more than 160 cities in the country.
Tez leverages proprietary credit scoring algorithms based on alternative data and a payment-agnostic platform to offer collateral-free credit.
The acquisition positions ZoodPay, which is focused on emerging markets across the Middle East and Central Asia, as a key new player in Pakistan’s fintech and digital lending space.
ZoodPay CEO Michael Khoi said: “Pakistan is a market brimming with potential given the number of people seeking access to credit facilities.
“We are confident that by combining ZoodPay’s unique ecosystem and experience operating in frontier markets with Tez’s local know-how, strong team and ecosystem partnerships, we will be able to positively impact the life of Pakistani people and empower them by giving them access to easy, affordable and reliable digital financial services”
Tez co-founders Naureen Hyat and Humza Hussain said: “We started Tez with an ambition to make access to finance for the masses as easy as access to a mobile phone.
“We are humbled and thrilled by the confidence shown in our business model by larger regional players and look forward to the next level of development for Tez where our learnings in crafting the digital lending journey and managing risk can serve as a foundation for delivering consumer-centric lending solutions at scale, while creating credit histories for the masses.”