Neem, an embedded finance platform based in Karachi, announced on Tuesday that it has raised $2.5 million in a seed funding round from local and global investors, the platform said the funding would “further its mission of bringing financial wellness to Pakistan’s underbanked communities both individuals and businesses”. Embedded finance companies are technology firms that integrate financial services traditionally offered by banks into the product portfolio of non-financial entities. Neem was cofounded by Nadeem Shaikh, Vladimira Briestenska and Naeem Zamindar.
According to the press release, SparkLabs Fintech, Arif Habib Ltd, Cordoba Logistics & Ventures Ltd, Taarah Ventures, My Asia VC, Concept Vines, Building Capital, partners at Outrun Ventures and strategic angels as CSO of tech house BPC, founding partner at Mentors Fund, as well as fintech veteran and ex-CEO of Seccl and others participated in the seed funding round.
Talking about the company’s aims, cofounder Shaikh explained, “The embedded finance revolution that is taking place globally in financial services is about democratisation, personalisation and access to products and services at the point of experience. At Neem, we aim to provide solutions to customers when and where they need them.” Neem believes in a financial wellness model that includes giving individuals and businesses control through payments, addressing their needs through credit, absorbing risk through access to insurance, and providing financial freedom through savings and investments, the press release stated.
The company’s platform offers two core options a Banking as a Service (BaaS) platform and a lending platform. The former facilitates partners in embedding wallets and payments and offering customised insurance and savings plans while the latter allows partners to provide tailored lending products for both consumers and micro, small and medium enterprises (MSMEs).
Arif Habib Limited CEO Shahid Ali Habib, while commenting on the development, said, “We are really excited about our investment in Neem which is looking to transform the financial landscape in the country. “We strongly believe in Neem’s ability as a leading embedded finance platform to drive financial inclusion in Pakistan which aligns well with the core values of Arif Habib Group.”