Pathao, a consumer service platform in Bangladesh, has raised US$12Mn in a pre-series B funding round, marking a shift towards fintech. This latest investment boosts Pathao's total capital to over US$50Mn, a record for a pre-series B start-up in the country.

The funding round was led by VentureSouq, a MENA-based firm known for its "platform bets" across the Middle East, Africa, and South Asia. Additional contributions came from Anchorless Bangladesh, Osiris Group, South Asia Tech, Openspace Ventures, B/deshi Invest, and other investors.

Having transitioned into a profitable entity in recent years, Pathao now aims to enhance its fintech offerings. According to Fahim Ahmed, Managing Director and CEO of Pathao, the company plans to improve the financial landscape in Bangladesh similar to its impact on urban transportation and logistics.

Pathao has already ventured into fintech with services like Pathao Pay, a digital wallet, and Pay Later, a buy now, pay later solution. The new funding will facilitate the expansion of these services, focusing on technology refinement and market expansion.

"Our core users are the digital native youth of Bangladesh, underserved by traditional banking systems," Fahim Ahmed noted. Pathao aims to develop a financial management ecosystem tailored to young professionals and tech-enabled entrepreneurs in Bangladesh.

Tammer Qaddumi, Co-Founder & General Partner at VentureSouq, expressed confidence in Pathao’s potential, citing the company's strong market position and trustworthy team. Rahat Ahmed, Founding Partner & CEO at Anchorless Bangladesh, also highlighted Pathao's strategic advantage in tapping into Bangladesh's burgeoning digital ecosystem and economic growth.