KARACHI: Bank Alfalah Ltd announced on Friday its entry into the venture capital (VC) ecosystem through an agreement to acquire a 7.2 per cent equity stake worth Rs140 million in QistBazaar, a buy-now-pay-later (BNPL) fintech.

A press release said the agreement with the fast-growing non-bank financial company licenced by the Securities and Exchange Commission of Pakistan marks a breakthrough in the country’s fintech landscape.

“It’s the first time a commercial bank has taken an equity stake in a BNPL fintech. With this collaboration, the bank aims to transform the BNPL landscape in Pakistan and pave the way for more collaboration between commercial banks and the fintech,” it said.

In addition to the equity agreement, Bank Alfalah and QistBazaar have signed an embedded financing agreement in Shariah-compliant mode for up to Rs350m, subject to terms and conditions.

The bank will incorporate digital financing products within the QistBazaar platform to offer embedded consumer durables financing on the BNPL model. This will target customers with limited or no access to formal credit.

According to QistBazaar CEO Arif Lakhani, the platform has been on a mission to “democratise purchasing power”.

Published in Dawn, May 6th, 2023