Savyour, Pakistan’s only cashback fintech startup, has announced the closure of its operations, a decision confirmed by one of the company’s co-founders.
The company did not disclose any reason for the shutdown and only said that the decision was taken 12 months ago. “Over the past year, the team has been diligently working on this transition, ensuring a smooth and well-managed wind-down,” the company said.
“Today, after a period of internal restructuring and ideation, Savyour announces its decision to close, marking the end of one chapter and the beginning of another phase of strategic growth.”
This marks the conclusion of an ambitious journey that began in August 2020 when the company set out to transform the country’s e-commerce ecosystem with its innovative cashback model. At its core, Savyour introduced a unique approach to Pakistan’s market, where cashback models were virtually unheard of.
The startup created an app and a pay-per-sale affiliate marketing network, enabling customers to earn cashback by purchasing from popular e-commerce brands like Daraz, foodpanda, and Bata. Acting as an intermediary marketing service, Savyour earned commissions from these eCommerce partners and passed a portion of those earnings back to consumers as cashback.
The concept resonated with Pakistani shoppers, especially as eCommerce grew during the pandemic. Cashback rewards—sometimes as high as 20% of the purchase amount—proved to be a powerful incentive for engaging with online retailers. The model proved appealing at a time when online shopping was gaining momentum both in Pakistan and globally.
Savyour’s early success saw the company sign over 250 partner brands and process more than 200,000 orders. The company also raised $3.3 million in its seed round, with investors such as Global Founders Capital, Zayn Capital, and Fatima Gobi Ventures. Co-founder Umair Gadit revealed that the company had achieved positive margins, suggesting the business model was profitable. The company had plans to expand beyond Pakistan.
According to Savyour, the company distributed more than Rs400 million in cashback rewards to 4 million customers across the country throughout its existence.
However, despite these early achievements, the cashback startup landscape has turned out to be more challenging than anticipated. While the concept of cashback had strong appeal in emerging markets like Pakistan, it also revealed a larger issue—the need for consistent and sustainable demand. Unlike more mature eCommerce markets such as the US or Japan, where cashback services have become deeply integrated into consumer behavior, Pakistan’s eCommerce space is still developing.
Globally, cashback platforms thrive by partnering with major retailers, offering customers a percentage of their spending. In mature markets, this business model flourishes due to widespread online shopping habits. In Pakistan, however, the economic environment and growing consumer pressure, especially in times of inflation, makes it difficult for cashback-driven platforms to maintain long-term growth.
Additionally, the rise of Buy Now, Pay Later (BNPL) services, offering flexible payment options, further complicated the competitive landscape for cashback-driven platforms.
