Online marketplace PostEx in Pakistan secures $1.5 million in seed funding to provide immediate payments to sellers for their cash-on-delivery transactions.
PostEx, a trailblazing fintech and logistics startup based in Lahore, is transforming the e-commerce landscape in Pakistan by addressing long-standing cash flow issues for online sellers. Founded in 2020 by Omer Khan, Saad Mahmood, Babar Razzaq, and Adil Naseem, the company has raised $1.5 million in a seed round, led by MSA Capital, and participated in by Shorooq Partners, Zayn Capital, VentureSouq, PNO Ventures, +92 Ventures, and Arbisoft's CEO Yasser Bashir [5].
PostEx's unique offering lies in its ability to provide instant payments of up to 80% of the invoice value as soon as the courier picks up the order from the warehouse. This innovation significantly shortens the payment delay that sellers typically face in a cash-on-delivery market, where merchants might otherwise wait weeks to receive payments [1][3].
In essence, PostEx functions as a receivables factoring solution and an aggregator of courier services. When an order is dispatched, PostEx credits the seller’s account in real-time with 80% of the order's value, a marked improvement over traditional models where payment happens much later [1]. This integration of embedded logistics with financing ensures sellers maintain healthier cash flows, reducing the financial strain caused by delayed payments in Pakistan's e-commerce ecosystem [3][4].
Moreover, PostEx optimizes delivery logistics by routing orders to the best performing courier on each delivery route. This approach reduces cancellations and returns due to delivery delays—a key issue in cash-on-delivery contexts where delays worsen cash flow problems for sellers [1].
The majority of online consumers in Pakistan pay using the cash-on-delivery payment method, and payment cycles for such orders can range between a week to a month, creating cash flow issues for sellers [2]. With PostEx, sellers can now operate more smoothly in Pakistan’s predominantly cash-driven e-commerce market [1][3][4].
The startup plans to use the latest funds to grow its products and expand its team. Tim Chen, Managing Partner at MSA Capital, believes that PostEx's integrated instant payments with logistics has the potential to resolve the hurdles posed by Cash on Delivery and build a regional leader [4].
In conclusion, PostEx is poised to revolutionize e-commerce in Pakistan by providing faster access to funds and improving delivery efficiency, making it easier for online sellers to thrive in the country's cash-driven marketplace.
[1] PostEx. (2021). PostEx Raises $1.5 Million Seed Round to Revolutionize the E-commerce Logistics Space in Pakistan
[2] Statista. (2020). Online Retail Sales in Pakistan from 2015 to 2025
[3] TechCrunch. (2021). PostEx aims to solve cash flow issues for online sellers in Pakistan with its fintech and logistics platform
[4] MSA Capital. (2021). MSA Capital Leads $1.5 Million Seed Round in PostEx, Pakistan’s Fintech & Logistics Startup
[5] Crunchbase. (n.d.). PostEx
- Technology plays a crucial role in PostEx's business model, as it integrates fintech and logistics to optimize delivery logistics and provide instant payments to sellers, bridging cash flow gaps common in the cash-on-delivery market.
- In the finance industry, PostEx functions as a receivables factoring solution, crediting sellers' accounts with 80% of the order's value in real-time, improving cash flow for online businesses in Pakistan.
- As PostEx continues to grow and expand its team, it aims to capitalize on the potential of its fintech and logistics platform to address the cash flow issues faced by online sellers in Pakistan and build a regional leader in the e-commerce landscape.
