Haball: Pioneering Shariah-Compliant Fintech Growth in Pakistan

Haball, a fintech firm in Pakistan, secured $52 million to enhance its shariah-compliant supply chain financing services. The company aims to expand both domestically and into the Middle East. Islamic finance is seeing robust growth in Pakistan, with the central bank targeting increased Islamic banking market share by 2028.

Haball, a Pakistan-based fintech company, has successfully raised $52 million to bolster its shariah-compliant supply chain financing and payment services, according to an official announcement on Tuesday. The funding round was led by Zayn VC and Meezan Bank. It includes $5 million in equity and $47 million in strategic financing, aimed at supporting Haball's growth within Pakistan.

The capital injection will also fuel Haball's expansion into the Middle East, initiating with Saudi Arabia this year. The company highlighted the burgeoning potential of supply chain finance in Pakistan, expected to surpass US$9 billion, spurred by a significant financing gap facing the country's SMEs, with less than 5% securing funds from commercial banks.

Islamic banking has been expanding rapidly in Pakistan, the world's second-largest Muslim nation, with assets reaching over 9,689 billion Pakistani rupees by mid-2024. The State Bank of Pakistan has set strategic plans to make 30% of banking assets Islamic by 2028. Haball serves nearly 8,000 SMEs and multinationals, offering digital invoicing and tax compliance in addition to financing services.

(With inputs from agencies.)