A $100 million worth has been placed on Pakistan's Fintech TAG

In its funding campaign to leverage the increasing popularity of digital transactions in Pakistan, Fintech company TAG Innovation Pvt. has secured $12 million from sponsors, including Liberty City Ventures and Canaan Partners of New New York.

According to Chief Executive Officer Talal Ahmad Gondal, the cash raised for the Rawalpindi-based firm was headed by Liberty City and featured investors such as Addition LP, Mantis Venture Capital, and Banana Capital LP. Quiet Capital and Fatima Gobi Ventures were among the earlier donors in the pre-seed phase. Polymath Digital doubled down, as did Khwarizmi Ventures and Plaid co-founder William Hockey.

An internal document obtained by Bloomberg estimates that the company is worth $100 million following the funding. According to data provided by Bloomberg, the price compared to an average of $386 million for Pakistan's 21 publicly traded financial institutions. Gondal did not respond to a request for comment on the appraisal.

As more and more individuals turn to digital payments during the epidemic, investor interest in Asia's fintech businesses has risen dramatically. This is especially true in nations where a significant portion of the population does not have access to traditional banks. For example, Xendit has become a billion-plus startup providing payment services to businesses in Indonesia and the Philippines.

As per the World Bank, Pakistan has the third-largest unbanked community globally, with around 100 million individuals who do not have a bank account. Last month, the State Bank of Pakistan granted TAG permission to conduct pilot operations as an electronic money institution. As a result, the company began selling banking services to a restricted number of consumers.

Gondal, a former Amazon-com executive said.

Demand has exceeded our expectations. Apart from the many retail clients still on the waiting list, we have been approached by various companies to digitize their cash-based payroll system.

A record amount of money is flowing into startups in the world's fifth-most populous country, with many venture investors making their maiden investments in the sector. As a result, they earned more money this year than in the previous six years combined.