Papara is Set to Acquire Pakistan’s Fintech Company SadaPay

In what could be a significant development for Pakistan’s startup scene, Turkish fintech giant Papara is set to acquire Pakistan’s leading fintech company SadaPay. The exact details of the acquisition are yet to be disclosed. However, some reports suggest that it could be valued between $30 to $50 million, making it a substantial deal.

What’s particularly encouraging is that Papara has also committed an additional investment of $10 million into SadaPay. This investment aims to strengthen SadaPay’s position in the banking sector as a challenger. It will further boost Pakistan’s diverse fintech space. This injection of funds is especially crucial amid a global funding crunch, as it provides much-needed support to the startup ecosystem in Pakistan.

Papara is Set to Acquire Pakistan’s Fintech Company SadaPay

Although the finer points of the deal are still being finalized, insiders have confirmed that the State Bank of Pakistan (SBP) was approached months ago for regulatory approval, which is expected to be granted soon.

The acquisition of SadaPay by Papara marks a significant milestone for the Pakistani fintech industry. Papara plans to acquire 100% of SadaPay while retaining its existing management and operational structure. Brandon Timinsky, the founder and current CEO of SadaPay, will continue to lead the company under Papara’s ownership.

Papara’s immediate $10 million investment into SadaPay will be used for technological advancements and market expansion. The company will particularly use it in the remittance business for Pakistani expatriates in the UK and Saudi Arabia. This strategic move aligns with Papara’s goal of expanding its presence in international markets.

The decision to sell to Papara was driven by various factors. SadaPay, which has raised over $20 million in funding, was valued at close to $100 million in its last round. However, with the current market conditions and the challenges faced by EMIs in Pakistan, selling to Papara was seen as a strategic move to ensure the company’s sustainability and growth.

Papara’s acquisition of SadaPay is not only a testament to the potential of Pakistan’s fintech industry. It is also a reflection of Papara’s confidence in the market. With Papara’s financial strength and expertise, SadaPay is well-positioned to expand its offerings and reach new heights in the fintech sector.

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