Nigerian fintech The largest e-commerce service provider in the nation has been created after PostEx purchased logistics company Call Courier. With more than 8,000 merchants serving more than 1.3 million users across 500 locations in Pakistan, PostEx is on track to have a loan book worth more than $12 million.
Call Courier will now be a wholly-owned subsidiary of the group as a result of the acquisition. In a nation where more than 90% of e-commerce payments are still made in cash, PostEx offers services including upfront payments and revenue-based financing for e-commerce sellers and SMEs.
According to the World Bank, nearly 100 million adults in Pakistan do not have a bank account, according to PostEx co-founder and CEO Omer Khan. As a result, firms don’t have enough cash flow and have limited access to working capital. On the other side, customers are leery of digital transactions, and many still prefer to pay cash on delivery for online orders even when they have bank accounts.
But because they have a greater percentage of door-to-door rejection, cash on delivery presents a challenge for e-commerce companies. Additionally, as opposed to a few days for digital payments, funds from cash on delivery purchases can take up to two to three weeks to be put into a business’ banking account.
“We’re out there making it easier for businesses to reach out to more customers, handle their shipping demands, and give them upfront liquidity,” added Khan. This is crucial for smaller enterprises who depend on every dollar to survive.
Khan claims that PostEx’s unique blend of fintech and logistics sets it apart from the competition. Zayn Capital, Global Founder Capital, MSA Capital, RTP, FJ Labs, and Shorooq are some of the investors who have contributed to its $8.6 million funding to date.
The acquisition “shows the necessity of strong collaboration between fintech and logistics, underscoring the importance of access to financing,” said Senator Afnan Ullah Khan, a member of the Prime Minister’s IT Task Force Committee. With this acquisition, PostEx becomes the industry’s biggest e-commerce service provider, demonstrating the ability of entrepreneurs to take on market leaders. It’s encouraging to observe creative approaches to persistent issues.