Online seller headache from cash-on-delivery reduced through Pakistan's PostEx securing a substantial pre-seed investment

PostEx, a fintech and logistics hybrid based in Lahore, has secured a six-figure (USD) pre-seed investment. The investment was provided by Farhan Abbas Sheikh, an angel investor, and marks the first external funding for the startup.

Founded earlier this year by Omer Khan and Saad Mahmood, PostEx aims to help small and medium-sized ecommerce companies by modernizing financing and logistics standards. The startup's mission is to help clients meet all their financing and logistical needs under one roof in an efficient and cost-effective way.

PostEx offers upfront payments for cash-on-delivery orders for a fixed fee. The amount varies based on the type and volume of the business. Omer Khan, co-founder of PostEx, revealed that they keep 20-25% of the total order value and provide the rest as upfront payment to sellers. In addition to upfront payments, PostEx provides 'free same-day delivery' using its own fleet in Lahore.

The investment aims to digitalize payments and bridge the gap between sellers and buyers. Farhan Abbas, the angel investor who funded PostEx, stated that the investment is a much-needed solution that brings myriad opportunities for extensive solutions in the e-commerce sector.

PostEx is currently working with vendors such as Shophive, one of the leading local players, and plans to onboard more vendors in the coming weeks. Approximately 80 to 90 percent of online orders in Pakistan are cash-on-delivery, and PostEx's CEO stated that they are focused on making it easier for online retailers to work around these orders.

The startup aims to address the issues associated with cash-on-delivery for online sellers, particularly the delay in payments from courier companies. The remaining balance is paid to sellers after deductions for returned orders once the orders are delivered to customers.

Zubair Naeem Paracha, the founder of our xA tech, wrote this article about PostEx's recent developments. Paracha is also the founder of Qraar, a career discovery and development platform for millennials in MENA.

Farhan Abbas further explained that PostEx offers opportunities as a platform to improve the efficient use of cash flows in the e-commerce sector. He described PostEx as a solution that could revolutionize the way e-commerce businesses operate in Pakistan.

In conclusion, PostEx is poised to make a significant impact on the e-commerce landscape in Pakistan by modernizing financing and logistics standards, improving cash flow efficiency, and addressing the challenges associated with cash-on-delivery orders. With the recent investment, the startup is well-positioned to scale its operations and onboard more vendors in the coming weeks.

Online seller headache from cash-on-delivery reduced through Pakistan's PostEx securing a substantial pre-seed investment