Online merchants in Pakistan find it challenging to sustain their business and achieve growth, as 95% of transactions are paid with cash on delivery. Courier companies in the South Asian nation take 10 to 15 days to settle those transactions from the dispatch time to delivery. All this leads to working capital issues for online merchants.
In 2020, Khan founded PostEx to solve these issues by giving merchants upfront payments against cash-on-delivery orders, and an attached logistics service. After getting regulated as a non-bank financial institution in Pakistan, the startup also launched a growth capital offering for online merchants. However, to reduce risks, the startup does not provide pure financial support to merchants, and only gives them credit if they use its logistics service.