Postpay, a Dubai-based buy-and-pay startup, has raised $ 10 million from the world’s leading buy-and-pay-later companies, After pay and Australia’s AP Ventures, the company said in a statement Monday. Thanks to this funding round, Post pay’s total funding to date is $ 35 million. The startup has previously raised $ 5 million in capital and $ 20 million.
Postpay was founded by Tariq Sheikh in 2019 to enable online merchants in the United Arab Emirates and Saudi Arabia to provide customers with a buy-and-pay option. Customers can use Pospay on the checkout page of partner stores and pay in equal installments in three monthly installments with no interest or fees (if paid on time).
This startup makes money by charging merchants a commission on every transaction. The startup says on its website that they use Postpay as a premium payment gateway because it helped them increase their conversion rates by 30% and average order value by more than 50%, adding that its solution can also help with retail trade more than 25%.
The company offers customers the opportunity to pay in three-month payments in partner stores without any interest or commissions. Although they shifted costs to retailers as premium payment gateways (typically charging over 5% per transaction), their solution increased conversion rates by 30%, increased average order value by over 50%, and lowered return rates by 25% Retailer does not pay for all these issues in advance every week, which increases the risk
BNPL products are used instead of credit cards. During the Covid-19 pandemic, with various restrictions, e-commerce flourished and grew in popularity.
In addition to the investments of Afterpay and AP Ventures (which are expected to be completed in the next few days), APV will appoint a director to the post-pay board of directors.
Postpaid is currently working with hundreds of international and local brands including H&M, Footlocker, Dermalogica, The Entertainer, and Squat Wolf. He plans to use the latest funds to develop his business in the Gulf Cooperation Council.
Commenting on this investment, Tariq Sheikh, Founder and CEO of Post-pay, said that they are very grateful and delighted that Afterpay and AP Ventures are part of their investor base. Afterpay is a pioneer in the zero cost customer model and it is an honor to be able to work with them for post-pay. This strategic investment not only provides them with the means to accelerate growth, but also provides an opportunity to collaborate and learn from their new shareholders as they expand in the MENA region. ”
Hein Vogel, CEO of AP Ventures, said: “We believe Postpay has an extremely strong team, products and partner base to provide market leadership in the region. We are proud to be part of a journey to the Middle East an amazing growth. Region.”
The buy-and-pay space in the Middle East has generated a lot of interest from international players. Tabby recently raised $ 50 million in debt from Partners for Growth and has raised large capital from international and regional investors. Spotii was acquired by Zip last month and Checkout invested in Tamara, Saudi Arabia’s buy-first, pay-later platform.