ZoodPay, a Swiss buy now, pay later (BNPL) service provider that focuses on customers in the Middle East and Central Asia, has bought Tez Financial Services, based in Karachi, Pakistan, Magnitt reported on Monday 23 may.
The FinTech company made the acquisition to serve Pakistani residents who lack access to formal credit by leveraging its digital lending ecosystem.
ZoodPay offers an app that shoppers and merchants can use in the company’s online mall.
Tez calls itself “Pakistan’s first digital financial institution“. The company is licensed in Pakistan as a “non-banking financial company” and said it operates in more than 160 cities. Tez also offers tools for users to engage in short-term investments.
Humza Hussain and Naureen Hyat, the founders of Tez, said they created the company to provide access to financial services through customers’ phones.
According to Crunchbase, ZoodPay raised $48 million in venture capital in three rounds between 2019 and November 2021. Investors include Sturgeon Capital, Zain Ventures, and French Partners. Tez raised $1.1 million.
Read more: ZoodPay, Network International Collab on BNPL Solutions in Jordan
In March, ZoodPay announced a new partnership with Network International to offer BNPL services.
The strategic collaboration has enabled ZoodPay to offer BNPL options to thousands of merchant partners through the partnership to enable Jordanians to purchase products and pay in instalments. At the time, Zoodpay already offered the option on ZoodMall, its own marketplace, with online partners.