Pakistan-based virtual banking platform Tag has acquired more than $12 million in capital as part one of the largest seed rounds in Southeast Asia. With the capital injection, Tag’s valuation now stands at $100 million, with the firm managing to finalize the fundraising deal within a two week timeframe.
Tag’s investment round included participation from Canaan Partners, Addition, Banana Capital, and Mantis. As mentioned in the announcement, the round was led by Liberty City Ventures. The firm has secured a total of over $17.5 million in funding.
Tag was notably a part of Y Combinator’s summer 2021 cohort.
Talal Gondal, Co-founder and CEO at Tag, said that they are “trying to become both Revolut and Paytm in Pakistan.”
The proceeds from the round will be channeled towards enhancing the firm’s product offerings and recruit new talent, Gondal confirmed.
Established in 2020 by Gondal, Ahsan Khan, and Alexander Lukianchuk, Tag is based in Islamabad. Previously, the company acquired $5.5 million via a pre-seed round. It was reported in June 2021 that Tag was planning to begin business operations at some point this year.
The digital retail banking firm’s flagship app features a free Visa debit card. Tag accounts support peer-to-peer transactions along with bank transfers. The app’s users may accept international payments as well. The app also allows users to settle utility bills and mobile recharges.
Pakistan’s startup sector is growing rapidly. A Checkout.com report has revealed that startup funding in the country reached around $125 million in 2021, which is significantly greater than the $8 million raised five years back.
As noted on the Fintech firm’s website:
“We are regulated by the State Bank of Pakistan as an electronic money institution (EMI), fulfilling service standards and requirements to ensure delivery of monetary service in a safe and sound manner. Your money is kept safe with TAG in AAA Credit Rated Partner Banks.”
The company also mentioned:
“Our systems are built with the highest level of security standards, 128-bit AES encryption, Access Control, and secure processes to ensure your money is always safe. You can instantly block your card if it goes missing or you suspect unauthorized use via the TAG Mobile App.”
Fintech platforms based in Pakistan saw their funding surge considerably during Q1 2021, reaching around $19.3 million. In March 2021, SadaPay finalized a $7.2 million round.
Other Pakistani Fintechs that have acquired capital in 2021 include Abhi, CreditBook, CreditPer, Finja, KTrade, and Safepay.