Tez Financial Services, a non-bank microfinance company, has raised $1.1m in its seed round of funding.
The capital injection was led by Omidyar Network with participation also coming from Accion Venture Lab, and Planet N. This deal marks Accion’s first investment into Pakistan.
Pakistan-based Tez is aiming to support the underbanked and unbanked consumers in the country by offering a range of financial services. According to a report from the World Bank more than 50 per cent of the population in Pakistan is unbanked.
The company utilises AI and data to analyse a consumer’s digital footprint trends, social behaviour and consumption patterns in order to provide personalised solutions. Its mobile app offers nano-credit, savings, insurance and investments.
No credit history is needed when taking out a loan through the app, as Tez uses machine learning solutions to estimate a borrower’s financial ability.
Capital from the round will be used to build the company’s credit portfolio, boost its mobile technology and secure a NBMFC license. In the future, the company is also hoping to offer consumers easy access to life and health insurance.
Omidyar Network head of policy and ecosystem building Kabir Kumar said, “New technologies, higher smartphone penetration, and falling data costs are fueling a great momentum for financial inclusion in frontier markets such as Pakistan. Tez is leveraging this to push the boundaries of banking in the country with an all-digital offering.
“Tez’s diverse team is also well-positioned to bring about the products and services that really speak to the next generation of consumers in that country.”
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