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TL;DR
- Pathao has secured $12 million in a pre-series B funding round, marking the highest amount raised by a pre-series B startup in Bangladesh.
- The funding was led by VentureSouq, with additional investments from Anchorless Bangladesh, Osiris Group, South Asia Tech, and Openspace Ventures.
- The company is shifting focus towards fintech, having launched Pathao Pay and Pay Later, Bangladesh’s first and largest buy-now-pay-later solution.
- Pathao aims to reshape Bangladesh’s financial landscape by expanding its fintech offerings and potentially establishing a digital bank.
Pathao, a leading digital services company in Bangladesh, has successfully raised $12 million in a pre-series B funding round, marking a significant milestone in its strategic shift towards fintech. The investment, which brings Pathao’s total capital to over $50 million, is the highest amount raised by a pre-series B startup in Bangladesh. This funding round was spearheaded by VentureSouq, a venture capital firm based in the Middle East and North Africa, with additional contributions from Anchorless Bangladesh, Osiris Group, South Asia Tech, Openspace Ventures, and other investors.
Over the past two years, Pathao has undergone a transformation into a profitable and financially robust entity. The company now aims to expand its service offerings with a focus on fintech. Pathao’s managing director and CEO, Fahim Ahmed, emphasized the company’s vision, stating, “Pathao is more than just a brand or a suite of products—it’s a lifestyle. Just as we have revolutionised urban transportation, logistics, and the gig economy, our efforts in fintech will reshape Bangladesh’s financial landscape.”
Pathao has established itself as a market leader in logistics, ride-sharing, and food delivery. The company has made notable strides in fintech by launching Pathao Pay, a digital wallet, and Pay Later, Bangladesh’s first and largest buy-now-pay-later solution. These initiatives aim to address the financial accessibility gap faced by young, upwardly mobile, and digital-native consumers in Bangladesh, who often encounter high barriers to credit access due to the limitations of traditional banks.
In addition to its recent funding success, Pathao is awaiting a central bank license to establish a digital bank. This digital bank is expected to provide a one-stop banking solution for young consumers and small enterprises, leveraging Pathao’s advanced analytics and engineering capabilities to offer personalized financial services. Pathao’s digital banking initiative is seen as a natural progression of the company’s mission to enhance the lives of its users by harnessing the power of technology.
Pathao’s journey began with a vision to bring offline activities in Bangladesh online, and it has since grown into one of the most recognizable tech startups in the country. With over eight million clients and a network of more than 300,000 drivers and food delivery personnel, Pathao continues to innovate and expand its services to meet the evolving needs of its users. As Pathao moves forward with its fintech ambitions, the company is poised to play a pivotal role in reshaping Bangladesh’s financial landscape and driving economic growth.
