Connect with us

Business

Salary advance platform Abhi issues MENAP region fintechs’ first Sukuk bond

Published

2 years ago

on

In a first for a fintech in the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region, Pakistani startup Abhi has raised funds from its first-ever Sukuk bond.

The salary advance platform raised Rs2 billion or $6.8 million, which its Chief Executive Officer (CEO) and Co-Founder Omair Ansari termed an industry first.

In an interview with Bloomberg, Ansari said demand exceeded expectations with subscriptions reaching twice the anticipated amount.

The Karachi-based startup which was founded in 2021 aims to enable employees of its partners to withdraw salary advances based on their accrued wages at any time. It also offers working capital to companies.

Abhi raised funds at a $90 million valuation within a year of its launch and entered the United Arab Emirates in December. The startup is currently in the process of buying a stake in courier company Universal Network Systems Ltd.

Pakistan’s startups have seen funding dry up this year amid one of the country’s worst economic crises. Several startups have closed in recent months, including Airlift and Vavacars, while others such as Maersk-backed Trella have announced their exit from the country.

The government has been scrambling to revive a stalled loan programme with the International Monetary Fund (IMF) for a desperately needed economic bailout, while its foreign exchange reserves plummet to a critical level.

Meanwhile, the country has the fastest inflation in South Asia, with people burdened especially with rising food and fuel costs. Amid the economic crisis, people are accessing salaries from Abhi’s platform much more than before while companies have also started accessing working capital more frequently, Ansari said.

“With this new funding, we can help ease the financial burden on struggling companies.

“The market is still so deep in Pakistan as banks have stepped away when it comes to lending to the real economy. We believe this is the environment for us to really grow,” the CEO said. 

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

Published

2 days ago

on

By

The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

Continue Reading

Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

Published

2 days ago

on

By

The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

Continue Reading

Business

Discos report losses of Rs239 billion.

Published

2 days ago

on

By

When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

Continue Reading

Trending