Dubai-based buy now pay later company Postpay secured an equity investment of $10 million from London-based venture capital firm AP Ventures and global fintech Afterpay.
Commenting on the fund secured the company stated, this equity investment “represents an important milestone in the Middle Eastern fintech space.” The investment positions Postpay to best serve retail groups and brands across the GCC and the rest of the Middle East and North Africa (MENA) region.
Postpay works with hundreds of leading global brands, including H&M, Footlocker, Dermalogica and regional merchants such as The Entertainer, Kcal and Squat Wolf.
The buy now pay later business model, which allows consumers to make online purchases instantly and spread their payments out over interest-free installments, has boomed since the onset of the pandemic as consumers switched to shopping online.
The industry is expected to grow 10 to 15 times by 2025 worldwide, topping $1 trillion in annual gross merchandise volume by some estimates, according to a report by New York data research consultancy CB Insights.
Tariq Sheikh Founder & CEO Postpay
“We are extremely grateful and excited to have Afterpay and AP Ventures as part of our investor-base. Afterpay is the pioneers of the zero cost to-customer model, and we are honored and privileged to work with them. For Postpay, this strategic investment provides not only capital to enable us to accelerate our growth but also an opportunity to collaborate and bring new learnings from our new shareholders as we expand in the MENA region.”
Mr. Anthony Eisen Co-CEO and Co-Founder at Afterpay said, “We are excited to support Postpay as they grow the buy now, pay later market in the Middle East. We have seen first-hand the incredible uptake of BNPL globally and have no doubt that Postpay will deliver a best-in-class solution across the Middle East.”
“We believe that Postpay has an extremely strong team product and partner-base to ensure market leadership in the region. We are proud to be a part of this journey in the Middle East, a region with such impressive growth. Our investment in Postpay fits well with our overall strategy and complements our other BNPL Investment in Asia as well,” Mr. Hein Vogel, CEO at AP Ventures said.
