27/09/2021
Oraan, Pakistan’s first gender-inclusive fintech, has raised US$3 million in the largest seed funding closed by a local women-led startup.Per a statement issued by the startup in this regard, the financing round was co-led by Zayn Capital and Wavemaker Partners, with participation from Resolution Ventures, i2i Ventures, Hustle Fund, Haitou Global, Plug and Play, and notable angels like Claire Diaz-Ortiz —a former partner at Magma Partners — who has also come on board as an advisor to the company. Federal Minister for Planning, Development, and Special Initiatives Asad Umar also lauded the startup.
Notable angels like Claire Diaz-Ortiz, former partner at Magma Partners, who has also come on board as an advisor to the company also participated in the round.
Taking to Twitter, he wrote:”Great to see Pakistani women also making their mark in the startup space. Initiatives like Oraan which improve financial inclusiveness for women would make a great impact on key strategic objectives like women empowerment and increasing savings rate.”The startup was founded in 2018 by Halima Iqbal, a former investment banker, and Farwah Tapal, a design strategist.
Oraan Committees, the startup’s flagship product, is the digital re imagination of Rotating Saving and Credit Associations (‘ROSCAs’), an age-old method of group saving and credit. “ROSCAs are known as committees in Pakistan and used by 41 per cent of the Pakistani population, with up to $5 billion rotating annually,” the statement read.
Focusing on gender-specific innovation, Oraan designed products and services around credit, insurance, and savings in Pakistan – home to 5% of the world’s unbanked female population.“Oraan was founded when we realised that the majority of the Pakistani population struggles to access financial services simply because they are not designed for them,” said Halima Iqbal, CEO and founder at Oraan. “
While there is a demand among women for credit, insurance, and savings services, they are unable to approach financial institutions due to mistrust, the complexity of products, and challenges around mobility.”Using the Oraan app, Oraan Savers are able to sign up for committees that suit their needs and allow them to save with groups beyond their immediate geographical and social networks.