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Pakistan’s FinTech Startup AdalFi Rraises $7.5m Funding Round

Banking 17 May 2023 500 Views

With AI-powered underwriting steps and credit scoring, AdalFi has constructed the essential infrastructure for instant loans and control smart, for SMEs and customers in Pakistan. These contain unsecured loan products such as revolving finance facilities, credit cards, and term loans, for SMEs and customers respectively.

Salman Akhtar, CEO and co-founder of AdalFi commented: “Pakistan has 50 million bank accounts yet only 2 million of these individuals and businesses have any credit relationship with their bank. The high cost of loan origination driven by physical verification of identity, assets, and financial health (in the absence of credit scoring) has restricted credit access to thin, top-tier customers. AdalFi’s digital lending platform allows partner banks to instantly credit score the other 95% of their existing customers who have never been lent to and cross-sell loans to them.” 

Salman Akhtar added: “In essence, we have built better underwriting models for banks. Not only have we lowered the cost of credit scoring and underwriting and therefore the cost of credit but we changed their outlook and got them to change their approach. Banks have been drawn to AdalFi because we offer rigorous credit scoring to ensure portfolio quality with zero-cost customer conversion (from depositors to borrowers). Moreover, we enable a breakthrough in customer experience with instant, smart loans which completely transform customer value delivery.” 

The organization will use the allocation for its ambition to be the leading digital loan solutions provider in the APAC area and beyond.

Amir Farha, Managing Partner at COTU Ventures concluded by saying,“​​Salman excited us from our first interaction. He and his team’s level of experience and track record building software for financial institutions is a rarity in this space. When you combine that with the innovative solution that AdalFi offers, specifically with its AI-powered scoring model that is scalable and frictionless, you have all the ingredients to massively transform the credit industry. The fact that they have already secured partnerships with the leading banks in the country, and have already facilitated new unsecured lending channels for their clients in such a short space of time, gives us confidence that they have an incredibly exciting future ahead of them.”