PostEx acquires Call Courier to become Pakistan's largest e-commerce service provider

Pakistani fintech PostEx has acquired logistics service provider Call Courier, creating what it describes as the country's largest e-commerce service provider. PostEx will now serve 1.3 million users with over 8,000 merchants in 500 cities across Pakistan, and is on track to have a monthly loan portfolio of over $12 million.

The acquisition means that Call Courier will become a wholly owned subsidiary under the group name. PostEx provides services such as upfront payments in a country where more than 90% of e-commerce payments are still made in cash, and revenue-based financing for e-commerce sellers and SMEs.

PostEx co-founder and CEO Omer Khan told TechCrunch that according to the World Bank, around 100 million adults in Pakistan do not have a bank account. As a result, companies have limited access to working capital and lack adequate liquidity. On the other hand, consumers are wary of digital transactions, and even many who have bank accounts still prefer to pay cash on delivery for items ordered online.

But cash on delivery is problematic for e-commerce businesses, as they have a higher rejection rate at the door. Additionally, funds from cash-on-delivery purchases often take up to two to three weeks to be deposited into a business' bank account, compared to a few days for digital payments.

As a result, the founding team of PostEx decided that it was possible to create a reliable logistics service provider, as well as initial funds. Upfront payments mean online sellers no longer have to wait for long payment cycles and have better cash flow.

"We are focused on making it easier for businesses to reach more customers, support their delivery needs, and provide them with upfront cash," Khan said. "It's essential for small businesses that need every penny to support themselves."

In terms of competition, Khan says PostEx's novelty factor is its hybrid of fintech and logistics. It has raised $8.6 million to date, and its backers include Zayn Capital, Global Founder Capital, MSA Capital, RTP, FJ Labs, and Shorooq.

In a statement, Senator Afnan Ullah Khan, a committee member of the Prime Minister's IT Task Force, said: "This acquisition shows the importance of close collaboration between fintech and logistics, underscoring the importance of access to capital. This acquisition makes PostEx the largest e-commerce service provider in the market, showing the potential of startups for difficult incumbents. It's refreshing to see new solutions to old problems ."