QistBazaar raises Rs500 million in a first of its kind private sukuk
The Karachi buy now pay later retailer placed an unrated, privately issued sukuk with an Alfalah fund. It is the first tranche of a planned series.
QistBazaar, a Pakistani buy now pay later and instalment financing platform, has raised PKR 500 million through a privately placed sukuk. The company announced the deal on 1 September, datelined Karachi. It described the issue as Pakistan's first unrated, privately placed sukuk of its kind, and said it is the first tranche in a planned series.
The Alfalah Shariah Private Financing Fund I, managed by Alfalah Asset Management Company, subscribed to the issue. Dada Partners was the exclusive financial adviser. It led the raise and placed the full amount with investors from the network of its founder and managing partner, Shazad Dada.
Other parties to the deal were Al Hamd Shariah Advisory Services, which certified the structure as Shariah compliant, and Pak Brunei Investment Company, which acted as investment agent. Akhund Forbes was legal counsel.
What the money is for
QistBazaar said it will use the capital to expand Shariah compliant consumer instalment financing, grow its merchant network, enter new product categories and widen its geographic reach. The company sells household and technology products on monthly instalments to customers who often cannot get conventional financing.
Arif Lakhani, who cofounded the company, said in the announcement: "This Sukuk represents much more than a new source of capital for QistBazaar."
QistBazaar was founded in 2021 by Lakhani and Karim Gilani. It now has more than 100 branches in 18 cities and about 800 employees. Its backers include Bank Alfalah, Indus Valley Capital and Gobi Partners. The company said its revenue and profit have roughly doubled every year for the past five years. Those figures come from the company and were not independently checked.
It also said it plans to seek a listing on the Pakistan Stock Exchange in future. For a retail startup, borrowing through a sukuk instead of selling shares is a notable choice. It suggests a business with steady cash flows is turning to local debt markets rather than foreign venture funds.
Reported from a company statement published by ProPakistani and coverage in The Friday Times.
