Pakistani buy-now-pay-later (BNPL) platform KalPay announced closing an early-stage funding round of over $1 million. This marks the first funding announcement for the Pakistani startup scene in 2024.

Led by Orbit Startups, the round attracted investors like Super Capital VC and Bansea. The exact amount remains undisclosed, but KalPay confirmed it surpassed $1 million when combined with debt financing. Their previous funding round concluded in January 2022.

KalPay operates in three areas: BNPL for online shopping, Rasayi (financing phones, travel, and digital assets), and Taleem (education financing). Founder Shershah Hassan plans to use a third of the funds for loan financing through partnerships with financial institutions.

He acknowledged competition in each vertical but emphasized the nascent stage of the BNPL industry in Pakistan, with room for multiple players. Hassan addressed challenges posed by the economic downturn, particularly high interest rates impacting affordability. He explained KalPay’s strategic approach of raising funds in tranches and focusing on investors aligned with their impact-driven vision.

“Investors remain cautious,” said Hassan, “but we believe things will normalize within a year.”

KalPay boasts positive unit economics and EBITDA profitability. The new investment will fuel operational scaling across all verticals, with a focus on impact-based use cases. Hassan hinted at key strategic partnerships in the pipeline that will significantly enhance their growth.

The company has already established partnerships with major players like Foodpanda, Careem, and educational institutions. These partnerships contribute significantly to KalPay’s growth, particularly in B2B2C sales.

KalPay’s successful fundraising paves the way for further expansion and solidifies their position as a key innovator in Pakistan’s growing fintech landscape.