Bazaar Technologies has acquired Keenu, a digital payments platform, to integrate ecommerce and payment infrastructure in Pakistan.

The State Bank of Pakistan approved the deal, making it the first time a major local ecommerce company has incorporated payments into its operations.

Bazaar, founded in 2020, is one of Pakistan’s largest ecommerce platforms with over US$100 million in funding. It serves customers in 10 cities.

Keenu, launched in 2013, processes over US$1 billion in annual payments and operates in more than 150 cities.

Both companies will continue independent operations while aligning to create an integrated commerce-fintech platform.

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🔗 Source: Bazaar Technologies

🧠 Food for thought

1️⃣ Integrated commerce-payment platforms drive higher transaction volumes in emerging markets

The Bazaar-Keenu integration follows a global pattern where combining e-commerce with payments creates powerful economic engines.

MercadoLibre’s integration of its Mercado Pago payment system led to significant transaction growth beyond its marketplace, showing how payment solutions can expand beyond the parent platform’s ecosystem 1.

Similar to Alibaba’s creation of Alipay in China, this model addresses market-specific challenges, particularly in Pakistan where cash-on-delivery has dominated due to historical limitations in digital payment infrastructure 2.

The acquisition is particularly timely considering Keenu’s growth trajectory, processing over 32.4 million transactions worth PKR 93.3 billion just in Q1-FY25, demonstrating the significant digital payment momentum that Bazaar can now leverage 3.

This integration addresses a critical business challenge in Pakistan’s e-commerce landscape, where high transaction fees and limited payment options have historically deterred consumer participation in digital commerce 2.

2️⃣ Pakistan’s fintech evolution shows maturing ecosystem with increased consolidation

Keenu’s acquisition represents a significant shift in Pakistan’s payment infrastructure, which began with traditional banks like UBL launching the first localized payment gateway in 2013 2.

The transaction showcases increasing valuation confidence in Pakistan’s fintech space—Keenu was previously targeted for acquisition by Saudi Arabia-based Hala for $45-50 million in 2022, highlighting growing international interest in Pakistan’s digital payment companies 4.

This consolidation trend mirrors global patterns where standalone payment providers increasingly struggle to compete against integrated solutions offered by larger platforms that can leverage existing customer bases 1.

The approval from both the Competition Commission of Pakistan and the State Bank of Pakistan signals regulatory support for fintech consolidation that enhances financial inclusion without raising competition concerns 5.

Pakistan’s digital infrastructure metrics, with over 190 million mobile connections and a young, tech-savvy population, create favorable conditions for integrated platforms.

3️⃣ Digital payment integration addresses critical financial inclusion gaps

The Bazaar-Keenu merger directly addresses Pakistan’s significant financial inclusion challenges, where a substantial portion of the population remains unbanked and reliant on cash transactions 3.

The integration aligns with the State Bank of Pakistan’s National Financial Inclusion Strategy, which aims to broaden access to formal financial services—a goal specifically mentioned in the acquisition approval 6.

The merger’s timing is strategic as Pakistan’s digital payment infrastructure has reached a critical threshold, with established networks like 1LINK connecting 37 banks and microfinance institutions to facilitate seamless transactions 7.

Successful private systems like Keenu, with its presence in over 150 cities, demonstrate the potential for enhancing financial inclusion through technology-driven solutions that reduce cash dependency 86.

Evidence from other emerging markets shows that integrated digital payment systems are crucial for bringing informal market transactions and unbanked populations into formal economic systems, potentially accelerating Pakistan’s economic development 9.

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