Pakistan-based fintech and logistics startup PostEx is set to expand into Saudi Arabia and the UAE following a fresh $7.3 million equity funding round led by Dubai-based Conjunction Capital. This strategic move aims to leverage the company’s recent profitability and robust growth to capture new e-commerce markets in the Gulf region.
Scaling Operations Through Strategic Growth
PostEx initially bootstrapped its financial services using its own equity, navigating Pakistan’s restrictive capital control environment. As the startup established a reliable track record of merchant credit-payback, it successfully transitioned to partnering with conventional banks, allowing the firm to extend loans directly from bank balance sheets.
A pivotal moment for the company arrived in August 2022 with the acquisition of rival Call Courier. This move expanded its logistics footprint from three major hubs to over 650 cities, enabling PostEx to serve a diverse range of clients, from small businesses to large enterprise e-commerce players.
Profitability and Financial Momentum
Founder and CEO Omer Khan confirmed that PostEx achieved profitability in November 2023, just over a year after the Call Courier acquisition. The company currently boasts an annual recurring revenue (ARR) rate of $21 million, processing 4 million transactions monthly, with projections to exceed $25 million by year-end.
“There is no cost of acquisition, except for the cost of debt or capital,” Khan noted, emphasizing the company’s focus on healthy margins. The startup is currently maintaining a steady month-on-month growth rate of 10–15%.
Entering New Markets With $7.3 Million in New Funding
The latest $7.3 million infusion will fuel the company’s international roadmap. PostEx plans to enter Saudi Arabia within the next three months, with subsequent expansion into the UAE. To support this aggressive scaling, the company is already in talks to raise an additional $15 million.
In Saudi Arabia, PostEx is initiating a pilot program with select online merchants via local financing partners. Simultaneously, the company is engaging with the Saudi Central Bank to secure a formal financing license. The startup is also testing its platform in the UAE, where it already holds the necessary licensing to offer financial services.
Deepening Roots in Pakistan
Despite its international ambitions, PostEx remains committed to its home market. The company plans to increase its workforce from 6,500 to 9,000 employees by the end of the year, focusing investment on high-growth cities across its 600-city network.
Beyond logistics and lending, PostEx is testing a digital payments service designed to digitize doorstep and checkout transactions for Pakistani merchants. This complements their existing expense management system, which provides a unified portal for businesses to handle salaries, vendor payments, and operational expenses.
The recent funding round included participation from Dash Ventures and Sanabil 500, alongside existing investors VSQ, FJ Labs, and Zayn VC. This latest round brings the startup’s total funding to $15.9 million.
