Bangladeshi consumer technology provider Pathao has announced raising $12 million in a pre-Series B funding round as the company shifts its focus towards fintech.
The latest investment brings Pathao’s total capital raised to over $50 million, marking the largest pre-Series B funding for any Bangladeshi startup.
The round was led by MENA-based VentureSouq, which has invested in technology platforms across the Middle East, Africa, and South Asia.
Other notable investors include Anchorless Bangladesh, Osiris Group, South Asia Tech, Openspace Ventures, and additional backers.
Pathao, which has established itself as a market leader in logistics, ride-sharing, and food delivery, has been profitable and financially stable for the past two years. The company now aims to leverage its position by expanding into financial technology (fintech) services.
“Pathao is not just a brand or a suite of products—it’s a lifestyle. We’ve transformed urban transportation and the gig economy in Bangladesh, and we plan to do the same in fintech,” said Fahim Ahmed, Pathao’s Managing Director and CEO.
Pathao has already made significant moves in Fintech with the launch of Pathao Pay, a digital wallet, and Pay Later, Bangladesh’s largest buy-now-pay-later (BNPL) service.
Powered by machine learning, the company’s underwriting has helped its BNPL service achieve profitability.
The new funding will be used to scale Pathao’s fintech offerings, enhance its technology, and expand its market presence.
Pathao aims to provide personalized financial solutions to over 5 million young professionals and 500,000 small businesses, using advanced technology to optimize user experience.
VentureSouq’s Co-Founder and General Partner, Tammer Qaddumi, expressed confidence in Pathao’s ability to drive growth in Bangladesh’s digital ecosystem.
“With its market reach and trusted brand, Pathao is uniquely positioned to become a major player in fintech,” said Qaddumi.
Since its inception in 2015, Pathao has served over 10 million customers and generated more than 500,000 jobs across Bangladesh’s gig economy and small business sector.
