PostEx, a Pakistani startup specializing in financial and logistics services for online merchants, is preparing to enter new markets, starting with Saudi Arabia. The founder and CEO of PostEx, Muhammad Omer Khan, revealed the company’s expansion plans in an exclusive interview with TechCrunch.
The e-commerce sector in Pakistan has experienced an impressive 50% growth in the past year, with PostEx being a significant catalyst in this progress. Online merchants in Pakistan often struggle to sustain and grow their businesses due to the prevalent practice of cash-on-delivery payments, which account for 95% of transactions. Moreover, the time it takes for courier companies to settle these transactions from dispatch to delivery, spanning 10 to 15 days, exacerbates working capital challenges for online merchants.
Faced with these obstacles, Khan established PostEx in 2020 to address these issues head-on. The startup offers merchants upfront payments for cash-on-delivery orders, along with integrated logistics services. By becoming a regulated non-bank financial institution in Pakistan, PostEx expanded its range of services to include growth capital options for online merchants.
To ensure the financial stability of both the merchants and themselves, PostEx takes a cautious approach by offering credit support exclusively to merchants with a proven track record of reliability and prompt payment. This strategy minimizes risks while still empowering online merchants to expand their businesses with newfound capital.
PostEx’s decision to expand into the Saudi Arabian market highlights the company’s ambition to disrupt and revolutionize e-commerce on a global scale. By expanding its footprint beyond Pakistan, PostEx aims to bridge the gap in financial and logistical services for online merchants in various markets, enabling them to thrive and contribute to the growing e-commerce landscape.