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Monday, July 15, 2024

Turkish Fintech Giant Papara Acquires Pakistan’s SadaPay

Turkish fintech unicorn Papara has successfully acquired Pakistan's Electronic Money Institution (EMI) SadaPay, marking its expansion into South Asia with a full 100% purchase.

Founded by Brandon Timinsky in 2019, SadaPay rapidly emerged as one of the fastest-growing Electronic Money Institutions worldwide, reaching 1 million users in record time. Today, SadaPay offers a variety of features, including P2P money transfers, debit cards, and payment products, processing $1.5 billion in annual payment volume. It was also the first institution in the Middle East and Asia (MEA) region to introduce a numberless debit card in collaboration with Mastercard.

These and other innovations have established SadaPay as a pioneer in Pakistan’s financial transformation. Since its inception, SadaPay has raised $20 million in equity funding, with the two most recent rounds led by Recharge Capital and Kingsway Capital.

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Papara CEO Emre Kenci commented,

“This acquisition marks one of the most significant fintech investments in the country in recent years. We aim to position SadaPay as the leading fintech player in the region by bolstering its innovative and bold initiatives with Papara’s business know-how, robust technology, and user-centric culture. SadaPay will continue its growth journey with its brand. Pakistan’s future star status is predicated on its population growth, which could place it among the largest economies in the world in the next 50 years.”

SadaPay Founder and CEO Brandon Timinsky said,

“We’re fortunate to leverage Papara’s industry expertise, advanced technology platform, and diverse product offerings. With SadaPay’s strong brand, exceptional team, and local foundation, this acquisition will significantly accelerate the pace at which we can deliver value to Pakistan’s quarter-billion citizens.”

In February 2024, it was reported that SadaPay was being acquired by Turkish fintech giant Papara for less than $50 million, down from its previous valuation of $120 million. Additionally, Papara has committed an extra $10 million to SadaPay to strengthen its position as a competitor in the financial services sector.

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Moreover, reports indicate that the acquisition will not change SadaPay’s structure, and its team will continue as usual, with Brandon Timinsky remaining as CEO. This move follows Papara’s European expansion with the acquisition of Spanish fintech Rebellion in 2023.

With over 240 million people, Pakistan is the fifth most populous country, offering vast potential for financial innovation. With 70% of the population under 35, the fintech sector and technology investments are rapidly growing.