Pre-Seed Funding Round At Pakistan’s Mahaana Wealth Raises $2.1 Million

Mahaana Wealth recently closed its $2.1 million pre-seed round, which will directly contribute to meeting the regulatory capital requirements. Mahaana Wealth recently secured regulatory approvals from the Securities and Exchange Commission of Pakistan to introduce technology-led investment management in Pakistan.

Vostok Emerging Finance (Sweden), SparkLabs Group (Korea & Hong Kong), and regional strategic partner IGI Holdings (JV Partner of Nestle in Pakistan) took the lead in the financing. Mahaana, a graduate of Y Combinator’s W22 cohort, received its initial funding from Mattias Martinsson (Founder of Tundra Fonder).

Pre-Seed Funding Round At Pakistan's Mahaana Wealth Raises $2.1 Million

“In a country where more than 50% of the population is under debt and spends 30% of their monthly income on repaying debts, the company sees opportunities for every person in Pakistan to create a financial security net in the form of building their savings & retirement funds.,” said Muhammad Shamoon Tariq, the founder of Mahaana and ex-partner of Tundra Fonder (Sweden).

“It’s heartening to see SECP acting proactively in bringing the required policy reforms and introducing new license categories, such as digital Asset Management and Digital Investment Advisors, to get away with the regulatory bottlenecks restricting individual retirement and saving accounts, and we are glad we were part of the consultations and now geared up to turn that into reality.”

The goal of Mahaana is to use cutting-edge financial technology to build a platform that will allow Pakistan’s 50+ million working-class people to better manage their retirement funds in light of their particular situation. The 401(k) plan in the US and the Swedish savings and pension model have both been in use for many years, but Pakistan trails far behind with just about 250,000 individual investors (0.02% population penetration), compared to 6 million in Sweden (60% penetration).

“Sweden’s savings revolution happened during the 80s and 90s and it has played an important role in achieving our status as a welfare state. Given its low savings rate and its young population Pakistan has a great opportunity right now that it needs to take advantage of,” said Mattias Martinsson, Founder of Tundra and initial investor in Mahaana.

“Through stimulating private savings now, Pakistan can make sure that the state is not overwhelmed 30 years from now when the youth of today retire. I hope Mahaana can play a key role in making sure this opportunity is not lost. I have known and worked with Shamoon for 8 years and I cannot think of a better person to lead Mahaana on its important mission ahead,” he added.

Lack of knowledge, regulatory obstacles, and lack of confidence in the financial system are the key barriers to financial inclusion. The business has actively collaborated with the regulator to alter laws limiting financial inclusion, and it is in a strong position to play a significant role in Pakistan’s transition to responsible wealth and asset management by putting up creative, safe, and ethical savings products.

“With savings and pensions, Mahaana is addressing one the most important long-term financial issues that exist in Pakistan today,” said David Nangle, CEO of VEF, and added, “We are proud to back Shamoon and his team in this scale venture and that Mahaana’s success will be a positive for both the users of its platform and Pakistan as a whole.”