TAG Fintech, a Pakistani startup, has raised the largest seed round of investment across Middle East, Africa and Pakistan. As its neobanking service expands beyond Pakistani borders, its valuation could exceed $1 billion.
TAG is creating a digital bank for the masses, with an aim to integrate all aspects of users' financial lives. Their service offers Visa debit cards, e-wallets and instant money transfer capabilities in one convenient package.
Pakistan, home to over 225 million people, is one of the largest countries in the world. Unfortunately, its banking infrastructure is outdated and not accessible to everyone. Furthermore, Pakistan's economy is growing rapidly, creating endless expansion opportunities within its market.
The government has implemented several policies to foster the growing digital economy, such as a legal framework for Electronic Money Institutions and a Digital Banking Policy. These have spurred investor enthusiasm and led to increased investment in this sector.
Pakistani startups are facing difficulties raising capital in the current environment. Some have shut down, while others continue to operate but lack funding sources.
These challenges are not unique to Pakistani startups; they affect businesses across other emerging economies as well. Nonetheless, these obstacles can be overcome.
As Pakistan's ecosystem matures and more investors become comfortable with risks, more growth investments are flowing in. Recently, Sequoia Capital and Dragoneer both invested in startups - evidence that global growth investors are showing interest in Pakistan's ecosystem.
Additionally, the government has created an investment fund for startups who have raised funding and wish to expand into other markets. These funds will be used to support the launch of new products and services as well as construct business infrastructure so these businesses can flourish in other regions.
tag pakistan is a startup that specializes in neobanking and strives to revolutionize the banking industry by taking into account trends and global developments. According to CTO Alexander Lukianchuk, TAG Fintech strives to offer quality and innovative solutions to their customers.
TAG plans to enter the Middle East and South Asia in the first half of 2023.
Their vision is to revolutionize banking by providing a convenient, secure, and regulated solution that offers all financial products and services under one roof.
This team is composed of talented and experienced professionals, dedicated to creating a modern and transparent bank for Pakistanis. At its heart lies Raast - an instant payment system that supports seamless digital identity through NADRA.
It has also integrated its KYC process with the national database of citizens, enabling it to carry out a more thorough verification of users' personal data. Furthermore, it offers users a complimentary Visa debit card.
TAG's neobanking service is accessible to everyone in Pakistan and it can be opened within three minutes. It boasts a number of features such as an e-wallet, instant P2P transfer and Visa debit card that works anywhere in the country. Furthermore, there's a mobile wallet which enables its users to pay utility bills or recharge their phones with just a few taps on their smartphones.