Sequoia backs fintech Dbank in maiden Pakistan investment

The world's most influential venture fund has made its first investment in Pakistan, joining a growing list of high profile investors who have backed young firms in the South Asian market.

Dbank, a startup based in Pakistan, said on Thursday that it has raised $18.6 million in a seed round. The Pakistan startup said that Brazil's Nubank, Askari Bank, and Rayn participated in the round.

Dbank will try to expand the reach of financial services in a transparent and friendly manner in Pakistan, taking on the informal credit system that tends to exploit those in need with high interest rates.

Dbank will try todemocratize banking, however the startup wants to keep its roadmap under wraps for now, Aidrus said.

Half of the population of Pakistan don't have a bank account. Aidrus said that they wanted their users to be in control of their money.

The unbanked population faces a number of challenges that have been studied by the two men who worked on payments rails for the Next Billion Users initiative. Aidrus joined the Government of Pakistan as a chief digital officer.

In recent years, the State Bank of Pakistan has explored opportunities to improve the nation's payments infrastructure to increase financial inclusion. The country has developed a real-time payments system and a digital identity platform.

The new full banking digital license allows more players to serve as banks that can take deposits from customers without having to have physical centers. Dbank is applying to become a bank in Pakistan.

The ideal time to launch a venture like Dbank is when the key building blocks of the real-time payment system by State Bank of Pakistan are in place. The private sector can help move economies from cash to digital if digital public infrastructure is used correctly.

Dbank plans to build a customer-centered digital bank in the Pan- Islamic world, according to Aidrus.

In the past two years, scores of investors including Tiger Global, Addition and Prosus Venture have invested in Pakistan. The nation is also feeling the effects of the market downturn. Airlift, one of Pakistan's most celebrated startup, recently announced it was shutting down.

Pakistan is the fifth most populous nation and has a fast-growing middle class. There is an opportunity to build a large, customer-centered bank. Dbank is taking a digital-native approach to democratizing banking and making a broad set of financial services friendly, transparent and accessible for the entire nation. The team behind this is a unique combination of talented people and we are excited to be early partners with them.