ZoodPay acquires Tez Financial in Pakistan’s first fintech M&A deal

ZoodPay acquires Tez Financial in Pakistan’s first fintech M&A deal

Tez Financial Services was the first fintech in Pakistan to secure a Non-Bank Financial Company (NBFC) license in 2018. The company, backed by investors including Planet N, Flourish Ventures (Omidyar Network) and Accion, provides nano-loans to the unbanked and underbanked masses across more than 160 cities in Pakistan.

Michael Khoi, CEO of ZoodPay, said: “Pakistan is a market brimming with potential given the number of people seeking access to credit facilities. By combining ZoodPay’s unique ecosystem and experience operating in frontier markets with Tez’s local know-how, strong team and ecosystem partnerships, we’ll be able to positively impact the life of Pakistani people and empower them by giving them access to easy, affordable and reliable digital financial services.”

Only less than 5% of the population in Pakistan have access to formal credit. Conventional players do not find much success in lending to the masses because of difficulties in assessing risk due to the lack of credit histories and credible data.

ZoodPay aims to address this problem by leveraging its holistic B2B2C digital-lending ecosystem, according to a statement.

ZoodPay along with Tez will provide access to affordable and flexible payment solutions to the unbanked and underbanked in Pakistan.

"This acquisition is aimed at enhancing financial inclusion for