Alibaba-backed BNPL firm gets SECP licence

ISLAMABAD:

The Securities and Exchange Commission of Pakistan (SECP) has granted a licence to Koko Tech Pakistan (Private) Limited (KTPL) to operate a Buy Now Pay Later (BNPL) business in Pakistan, according to an official statement issued on Tuesday.

KTPL is owned by Alibaba.com Holdings, one of the world’s leading e-commerce and technology companies. The entry of Alibaba-backed KTPL marks a significant milestone for Pakistan’s digital financial ecosystem, reflecting growing international confidence in the country’s large consumer base, expanding digital economy and untapped financial services market.

With advanced AI-driven credit assessment systems and globally tested digital infrastructure, KTPL is expected to introduce innovative, data-driven lending solutions in the BNPL space. This will enhance access to consumer financing, particularly for young users, freelancers and small businesses that remain underserved by traditional banking channels, which have often been reluctant to extend credit to these segments due to perceived risks and lack of formal documentation.

The development also represents a direct inflow of foreign investment into Pakistan’s financial sector, signalling that international investors are taking note of the country’s improving regulatory environment and digital adoption rates. Backed by Alibaba’s global expertise and capital strength, KTPL is well-positioned to support small and medium enterprises (SMEs), boost e-commerce activity and accelerate the shift towards a more inclusive, technology-led financial system that prioritises access over traditional collateral-based lending.

SECP Chairman Dr Kabir Ahmed Sidhu said that the entry of Alibaba Group will boost competition and innovation within Pakistan’s non-banking financial sector. He noted that Pakistan is an attractive destination for international investment, supported by its large population of over 240 million people, growing digital adoption across both urban and rural areas, and an improving regulatory framework that has been steadily modernised to accommodate new financial technologies.

The statement did not specify when KTPL would commence its BNPL operations or the expected scale of its initial rollout across the country. Following the pattern adopted by other digital lenders entering the market, the company is expected to begin with major urban centres before expanding to smaller cities.