ISLAMABAD: The Competition Commission of Pakistan (CCP) has given its nod for Bank Alfalah Limited to acquire a substantial 7.2% shareholding in QistBazaar (Private) Limited.
QistBazaar is a leading online retail platform specializing in electronics, and home products under the innovative Buy Now Pay Later (BNPL) service model. It is an SECP-registered Non-Banking Financial Company (NBFC), operating in the fintech space.
According to its founder, Arif Lakhani, “it offers convenient financial solutions through Shariah-compliant Musawamah financing.” Therefore, QistBazaar is able to push for financial inclusion, by providing the access of financial products to the individuals who don’t even have access to traditional banking.
In May 2023, Bank Alfalah, a major commercial bank, became the first bank to venture into the Venture Capital space, investing Rs 14 crore into Qist Bazaar for 7.2% of the company’s equity.
In addition to the equity agreement, Bank Alfalah and QistBazaar also signed a Shariah-Compliant, embedded financing for up to PKR 35 crore, subject to terms and conditions. Under the agreement, the Bank would incorporate its digital financing products within the QistBazaar platform, to offer embedded financing of consumer-durables on a BNPL basis. This was meant to target customers with limited or no access to formal credit.
The transaction was subject to its approval by the regulatory authorities, including the Competition Commission of Pakistan (CCP).
As per details shared by CCP, following a rigorous Phase-I competition assessment. The CCP has determined that Bank Alfalah’s partnership will not lead to undue market dominance, post-transaction. In line with the Competition Act, 2010, and CCP’s Merger Regulations, 2016, the approval was granted under Section 11.
According to CCP, Bank Alfalah’s investment in QistBazaar is poised to revolutionize the online retail market. The injection of funds will empower QistBazaar to enhance its service offerings, streamline its operations, and improve overall infrastructure. This, in turn, will translate to an improved experience for consumers, as they can expect better services and a wider range of products.
