Sequoia, the world’s most influential venture fund, has made its maiden investment in Pakistan, joining a growing list of high-profile investors who have backed young firms in the South Asian market in the past year. Islamabad-headquartered startup Dbank said it has raised $17.6 million in a seed round, the largest in Pakistan, co-led by Sequoia Capital Southeast Asia, the recently unveiled $1 billion fund, and Kleiner Perkins. Brazil’s neobank Nubank, Askari Bank, Rayn also participated in the round. Dbank is a fintech startup that will attempt 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 exorbitant and unpredictable interest rates.
The central bank has also introduced a new full banking digital license, allowing more players to serve as banks that can take deposits from customers without having to have physical centres. Dbank has applied to become a digital retail bank in Pakistan. Pakistan, the world’s fifth-most populous nation, has a fast-growing middle class with increasingly sophisticated banking needs. This signals a unique opportunity to build a large, customer-centric bank for millions of people. Dbank is addressing this by taking a digital-native approach to democratize banking and make a broad set of financial services friendly, transparent, and thus, accessible for the entire nation. The team behind this is a unique combination of talented people and Sequoia Capital Southeast Asia is truly delighted to have the opportunity to be early partners with them.