ANL 31.50 Decreased By ▼ -0.37 (-1.16%)
ASC 19.80 Decreased By ▼ -0.69 (-3.37%)
ASL 23.96 Decreased By ▼ -0.26 (-1.07%)
BOP 8.27 Decreased By ▼ -0.02 (-0.24%)
BYCO 10.42 Decreased By ▼ -0.37 (-3.43%)
FCCL 22.73 Decreased By ▼ -0.12 (-0.53%)
FFBL 27.10 Decreased By ▼ -0.30 (-1.09%)
FFL 20.40 Decreased By ▼ -1.30 (-5.99%)
FNEL 8.78 Increased By ▲ 0.04 (0.46%)
GGGL 28.10 Decreased By ▼ -0.80 (-2.77%)
GGL 46.55 Decreased By ▼ -1.67 (-3.46%)
HUMNL 7.35 Decreased By ▼ -0.18 (-2.39%)
JSCL 22.65 Increased By ▲ 0.02 (0.09%)
KAPCO 39.92 Decreased By ▼ -0.38 (-0.94%)
KEL 3.98 Decreased By ▼ -0.01 (-0.25%)
MDTL 3.75 No Change ▼ 0.00 (0%)
MLCF 45.75 Decreased By ▼ -0.81 (-1.74%)
NETSOL 166.06 Decreased By ▼ -2.69 (-1.59%)
PACE 8.15 Increased By ▲ 0.40 (5.16%)
PAEL 34.45 Decreased By ▼ -0.20 (-0.58%)
PIBTL 11.45 Decreased By ▼ -0.19 (-1.63%)
POWER 9.36 Decreased By ▼ -0.03 (-0.32%)
PRL 23.89 Decreased By ▼ -0.50 (-2.05%)
PTC 11.80 Decreased By ▼ -0.30 (-2.48%)
SILK 1.83 Increased By ▲ 0.01 (0.55%)
SNGP 56.25 Increased By ▲ 3.53 (6.7%)
TELE 14.75 Decreased By ▼ -0.10 (-0.67%)
TRG 167.26 Decreased By ▼ -0.99 (-0.59%)
UNITY 44.20 Decreased By ▼ -0.60 (-1.34%)
WTL 3.56 Increased By ▲ 0.03 (0.85%)
BR100 5,205 Decreased By ▼ -23.75 (-0.45%)
BR30 26,756 Decreased By ▼ -198.15 (-0.74%)
KSE100 47,793 Decreased By ▼ -80.19 (-0.17%)
KSE30 19,161 Decreased By ▼ -31.94 (-0.17%)

Coronavirus
HIGH Source: covid.gov.pk
Pakistan Deaths
22,971
3224hr
Pakistan Cases
1,001,875
1,84124hr
4.89% positivity
Sindh
363,101
Punjab
352,153
Balochistan
29,451
Islamabad
85,351
KPK
141,495

KARACHI: HBL becomes the first bank in Pakistan to invest in a digital fintech startup with its Rs 176 million (USD 1.15 million) participation in the last tranche of Finja’s Rs 1.56 billion (USD10.15 million) Series A1 round. HBL joins an impressive list of leading global fintech funds that have invested in Finja including BeeNext, Vostok Emerging Finance, Quona Capital, and ICU Ventures. All investors from previous rounds topped up their investment in Finja’s Series A1 round.

For HBL, an investment in Finja serves two of the bank’s strategic priorities, namely, making investments into Digital Financial Inclusion and Development Finance companies, especially ones making an impact in agriculture and SMEs as these are the backbone of the economy, and proactively reinventing HBL to become a “technology company with a banking license”.

Since the beginning of the Covid-19 pandemic in April last year, Finja has scaled its digital lending portfolio by 550% disbursing over 50,000 digital loans to Micro, Small and Medium Enterprises (MSMEs). Despite being the backbone of the economy, small businesses in Pakistan have traditionally not been able to obtain credit to grow.

“We are elated to have HBL participate in this funding round. Our ground-breaking success in digitally scoring undocumented small businesses has resulted in a 64% month-on-month portfolio growth for us since the outbreak of the pandemic earlier this year. Undoubtedly, HBL’s financial clout, massive network and progressive leadership will help us elevate the country’s most important segment, the SMEs,” said Qasif Shahid, CEO and Co-Founder Finja.

“These loans are critical for Pakistan’s economic growth. Our productive loans result in a 40% increase in SME revenue with less than a 1% default rate,” added Monis Rahman, Chairman and Co-Founder Finja.

Muhammad Aurangzeb, President & CEO HBL, commenting on the occasion said, “We are delighted to be investing in FINJA. Pakistan’s fintech landscape has immense opportunities. At HBL we believe that by making this investment we are not only developing the Startup ecosystem, but it will also pave the way for Pakistan to play a bigger role in the fintech space globally. SME lending is the future and therefore we are investing in Finja which enjoys a first mover advantage over the market in digitally lending to SMEs in this country.”—PR

Copyright Business Recorder, 2021