Pakistan's Fintech TAG Raises Funds at $100 Million Valuation

Pakistan's Fintech TAG recently raised $100 million in funding, as they attempt to disrupt the local banking industry with new features and technology that will enhance people's quality of life. Get more info visit Co-Founder at TAG.

TAG is an app that makes opening a bank account simple and time-consuming. Through their service, users get both a Visa debit card and mobile app with plenty of useful features.

The TAG app makes it simple for customers to make payments, pay utility bills and recharge their mobile phones using the app. Furthermore, it provides P2P transfers, effortless money transfers and other services that encourage consumers to save and spend responsibly.

Talal Gondal founded TAG, a fintech firm offering an innovative banking platform that has revolutionized how people bank in Pakistan. They provide various services like credit and loan accounts as well as savings accounts.

TAG also provides a mobile app with various banking and financial services, such as money transfers, debit cards and more - to make managing finances in Pakistan simpler for consumers. Regulated by the State Bank of Pakistan, this application strives to bring transparency and convenience to Pakistan's fledgling banking sector.

Investors are pouring into Pakistani startups, one of the last untapped markets for tech firms. Companies such as Kleiner Perkins, Tiger Global Management and Dragoneer Investment Group have made their first-time investments into Pakistan.

PYMNTS reports that startups have already attracted nearly $15 million in foreign investment this year, which is more than double the amount raised over the past six years combined.

TAG has attracted notable investors such as Harry Stebbings and Josh Buckley of Buckley Ventures. Additionally, it recently received a $10 million foreign investment from BridgeLinx, a transportation platform aiming to converge the fragmented trucking industry by connecting large companies with trucks and providing manufacturers with lower transport fares.

Despite these successes, there remain challenges that the startup must overcome. Recently, Pakistan has been embroiled in an investigation into Tag Innovation, a startup trying to launch an electronic wallet there.

On Friday, the State Bank of Pakistan revoked Tag's in-principle and pilot operations approval to operate as an electronic money institution, posing an existential threat to its startup. Citing "violations of regulatory requirements and other concerns" during Tag's pilot operation, the bank issued a statement from itself.

According to TechCrunch, the State Bank of Pakistan has ordered TAG Innovation to refund all outstanding funds to customers and submit an audit report by September. Furthermore, sources indicate that the bank has asked the co-founders of TAG Innovation to sell their shares in the company.