ISLAMABAD: A Pakistani startup providing financial and logistics solutions to online merchants is set to launch its services in Saudi Arabia and the entire United Arab Emirates in the coming week after successfully launching a pilot project in Dubai earlier this year, a top company official confirmed on Saturday.
Founded in 2020, PostEx provides a hybrid solution combining receivables factoring and courier services, offering upfront payment for invoice values to e-commerce companies using cash on delivery as a payment option.
According to one of its cofounders, PostEx surpassed an annual recurring revenue of $21 million last year, reached profitability and is currently handling over four million transactions every month.
In 2022, PostEx acquired a Pakistani logistics service named Call Courier, which enabled the startup to expand its presence from three major markets to over 650 cities in a single step.
“As soon as we launched our pilot project with minimum viable product (MVP) services about one and half months back in Dubai, more than 3,500 stores were registered, which showed that the response is quite massive over there,” Babar Razzaq, the company’s cofounder and chief technology officer, told Arab News.
“The same merchandise also has footprints in Saudi Arabia and they are also waiting for us to be there,” he continued. “So, we will be launching our full range of products next week in both the kingdom and the entire UAE.”
Asked about the company’s strategy during the pilot project, Razzaq said the full product is yet to be launched, as only some of its features had been introduced earlier to gauge the market response.
“MVP included order management solution, inventory solution and warehouse management solution,” he explained. “Now we are working on launching our main feature of financial solution.”The PostEx official added Saudi Arabia was a vast market with great potential, hoping his company would be able to tap more opportunities by providing better financial solutions.
“We will be leading there just like Pakistan very soon,” he said. Razzaq said PostEx had raised $7.3 million this month in an all-equity funding round led by Dubai-based Conjunction Capital to plan its market expansion into Saudi Arabia and the UAE.
“The $7.3 million raised is designated for expanding into Saudi Arabia and the UAE, with plans to invest heavily in these markets, where significant capital is needed for lending to e-commerce players,” he continued.