Turkish financial powerhouse Papara is poised to purchase Pakistan’s top fintech business SadaPay, potentially marking a major advancement in Pakistan’s startup industry. The specific information on the acquisition has not been revealed yet. Some estimates indicate that the amount of the deal could range between $30 to $50 million, which is significant.
Papara has pledged an extra $10 million investment in SadaPay, which is especially exciting. This investment seeks to enhance SadaPay’s standing in the banking sector as a competitor. It would enhance Pakistan’s varied fintech sector. This infusion of capital is particularly vital given the current global funding shortage since it offers essential assistance to the startup ecosystem in Pakistan.
Papara to Buy Pakistani Fintech SadaPay
Insiders have verified that the State Bank of Pakistan (SBP) was approached months ago for regulatory approval, which is expected to be granted soon, even though the details of the agreement are still being completed.
Papara’s acquisition of SadaPay is a major achievement for the Pakistani fintech sector. Papara intends to purchase the entirety of SadaPay while keeping its current management and operating setup unchanged. Brandon Timinsky, the creator and current CEO of SadaPay, will remain in charge of the company following its acquisition by Papara.
Papara’s prompt $10 million investment in SadaPay would be allocated for technological enhancements and market growth. The organization would specifically utilize it for the remittance business targeting Pakistani expats in the UK and Saudi Arabia. This strategic decision is in line with Papara’s objective to increase its footprint in global markets.
Various factors influenced the decision to sell to Papara. SadaPay, having secured more than $20 million in funding, was valued at about $100 million in its latest round. Selling to Papara was considered a strategic decision to secure the company’s viability and expansion because to the current market conditions and obstacles encountered by EMIs in Pakistan.
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Papara’s acquisition of SadaPay demonstrates the potential of Pakistan’s fintech industry. It also demonstrates Papara’s faith in the market. Papara’s financial strength and skills will help SadaPay grow and excel in the fintech industry.
