Karachi-based fintech Qist Bazaar has raised $3.2 million in a Series A round led by Pakistan-focused VC Indus Valley Capital, and joined by Asian investor Gobi Partners. The firm previously raised money from Bank Alfalah, a leading Pakistani commercial bank.

Founded in 2021 by Arif Lakhani, Qist Bazaar is a buy now pay later (BNPL) platform that allows users to purchase electronics, mobile phones, home appliances, and even motorbikes, on installments. Unlike other BNPL services globally or in the Middle East, Qist Bazaar focuses on serving the unbanked and underbanked majority.

The platform offers these products through its website or showrooms across different cities in Pakistan. Qist Bazaar is licensed by the Securities and Exchange Commission of Pakistan (SECP) as an NBFC (Non-banking Financial Company) and has disbursed over 55,000 product loans amounting to $12 million, in three years.

The Pakistani startup in a statement said that it caters to different groups of customers, ranging from those with no financial history to individuals already banking at established financial institutions, “By adopting a simple eligibility criterion—“Every Pakistani”—Qist Bazaar has enabled underserved groups such as domestic workers, rickshaw drivers, students, and micro-entrepreneurs to access installment-based financing,” noted the statement.

Qist Bazaar plans to use the latest funds to expand its product portfolio, enhance its tech, and scale its operations across the country.

Arif Lakhani, co-founder and CEO of Qist Bazaar, said, “At Qist Bazaar, we are committed to bringing the fundamental needs of Pakistanis within their reach. Home essentials like ceiling fans and water dispensers are necessities, not luxuries, yet many cannot afford them. With the support of our investors, we offer flexible payment plans, making these essential items more accessible to everyone.”

Aatif Awan, Founder and Managing Partner at Indus Valley Capital, commented, “We see enormous potential in Qist Bazaar’s ability to fundamentally reshape how consumer financing is done in Pakistan, similar to what Bajaj Finance did for India. What excites us here is not just the market opportunity but the impact that Qist Bazaar can have on the everyday lives of millions of Pakistanis.”

The startup claims to be EBITDA-positive since day one, reflecting its strong unit economics and focus on sustainable growth. Its statement also noted that the platform has a low delinquency rate, without sharing any specific details about it.