AdalFi, a digital lending infrastructure provider based in Lahore, Pakistan, has secured $7 million in funding. The B2B2C fintech aims to address lending challenges in Pakistan, where only 5% of deposit customers are also borrowers in banks.
AdalFi enables banks to tap into this large untapped customer base by offering rigorous credit scoring to ensure portfolio quality. The funding round was led by COTU Ventures and Chimera Ventures based in the UAE, Pakistan-based Fatima Gobi Ventures and Zayn Capital, and angel investors, including executives from Plaid, a US-based fintech and services provider.
AdalFi has signed up 14 financial institutions in Pakistan, including United Bank Limited (UBL), Habib Bank Limited (HBL), and Meezan Bank, among others.
The startup’s platform leverages its proprietary technology to score financial transactional data that banks already have, which allows for customized digital marketing to qualified prospects, followed by real-time loans.
With the new funds, AdalFi aims to reduce lead times for loan disbursements and shift loan seekers from informal markets to its platform.
The downside risk of non-performing loans is shared between AdalFi and the banks, with loan losses accounted for on a pro-rata basis in the fees due to AdalFi.
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