KARACHI: ZoodPay, a digitallending platform mainly operating in the Middle East and Central Asia, said on Mondayithad fully acquired Karachi-based Tez Financial Services Ltd (Tez), a non-bank microfinance company cofounded by serial entrepreneur Nadeem Hussain.

Speaking to Dawn, Mr Hussain refused to share the transaction value, citing a non-disclosure agreement with the acquirer.

`ManyPakistanistart-upshavehadfundraisingrounds.

But this transaction has ushered in the age of 100 per cent acquisition of local players by foreign firms. It`s a hugely positive development for the start-up ecosystem,` he said.

Backed by Mr Hussain`s Planet N, venture capital firm Flourish (formerly Omidyar Network) and seed-stage investment firm Accion Venture Lab, Tez was the first fintech in Pakistan that received a non-bank financial company licence in 2018. Its mainstay is providing nano-loans to the unbanked and under-banked masses in 160-plus cities of Pakistan. Currently, less than 5pc individuals in Pakistan have access to formal credit.

According to Mr Hussain, the start-up makes instant loans to those who can`t borrow from banks owing to a lack of credit history. `T EZ develops alternate credit history for them. Using customers` phone data to determine credit worthiness, we make loans of up to Rs5,000 within 10 minutes something conventional banks take weeks or even a month to do,` he said.

With the latest transaction, Mr Hussain has become the only Pakistani entrepreneur with three `exits` under his belt. Previously, he founded, expanded and sold the now rechristened Telenor Microfinance Bank and digital pharmacy Dawaai. His firm Planet N has invested in more than two dozen start-ups. ZoodPay has raised $50 million to date from leading global investors. The company has launched its Series C round and will use part of the proceeds for its expansion in Pakistan.

A statement by ZoodPay said its lending strategy would be marked by the acquisition of consumers and merchants via its diverse distribution channels, including its own e-commerce marketplace and a network of retailers and partners.