Pakistani fintech AdalFi plans to raise up to PKR652 million (US$2.35 million) through an IPO on the Pakistan Stock Exchange next month. The Lahore-based company will issue new shares. It would become the first fintech to list on the exchange.
Funding history
In February 2023, AdalFi raised a US$7.5 million Seed round. Investors included COTU Ventures, Chimera Ventures, Fatima Gobi Ventures, Zayn Capital, and angel investors. No sale by existing shareholders has been announced.
Lending footprint
Founded in 2021, AdalFi helps banks assess borrowers and automate loan approvals. The company reports more than PKR110 billion lent through its platform across nine banks. It has served over 130,000 borrowers, with more than half accessing formal credit for the first time.
How the platform works
Banks supply capital and keep loans on their own books. AdalFi earns a share of income and bears part of the credit risk. The platform uses account transactions to score borrowers with limited credit histories.
The company is exploring opportunities beyond Pakistan. In September, it signed an agreement with Saudi Finance Company to test cash-flow credit scoring. The proposed pilot would use regulated open-banking channels to assess applicants with limited credit histories.
Read more: bloomberg.com