Pakistani startup to launch financial and logistics services in Saudi Arabia and UAE – Business

ISLAMABAD: A Pakistani startup offering financial and logistics solutions to online retailers is set to launch its services in Saudi Arabia and the entire UAE in the coming week after a successful pilot project in Dubai earlier this year, a top company official confirmed on Saturday.

Founded in 2020, PostEx offers a hybrid solution combining receivables factoring and courier services, enabling prepayment of invoice values ​​for e-commerce businesses using cash on delivery as a payment option.

According to one of PostEx’s co-founders, last year the company exceeded $21 million in annual recurring revenue, achieved profitability, and now processes more than four million transactions per month.

In 2022, PostEx acquired a Pakistani logistics company called Call Courier, which allowed the startup to expand its presence from three major markets to over 650 cities in one go.

“Since we launched our minimum viable product (MVP) pilot project in Dubai a month and a half ago, more than 3,500 stores have been registered there, which shows the overwhelming response there,” Babar Razzaq, co-founder and chief technology officer of the company, told Arab News.

“The same product also has its footprint in Saudi Arabia and they are also waiting for us to be there,” he continued. “So next week we will launch our full range of products both in the kingdom and across the UAE.”

When asked about the company’s strategy during the pilot project, Razzaq said the full product has not been launched yet and only some of its features have been introduced early to gauge the market response.

“The MVP included an order management solution, an inventory management solution and a warehouse management solution,” he explained. “Now we are working on launching our main function of a financial solution.” The PostEx representative added that Saudi Arabia is a huge market with great potential, hoping that his company will be able to seize more opportunities by providing better financial solutions.

“We will soon be a leader there, just like Pakistan,” he said.
Razzaq said PostEx raised $7.3 million in an equity funding round led by Dubai-based Conjunction Capital this month to plan market expansion into Saudi Arabia and the United Arab Emirates.

“The $7.3 million raised was earmarked for expansion to Saudi Arabia and the United Arab Emirates. Major investments are planned in these markets, where significant capital is needed to provide loans to e-commerce entities,” he added.