The announcement, made at an event in Islamabad, follows months of speculation about Retailo's plans for 2027.
Analysts at SadaPay estimate that the addressable market could be worth $12 million by 2027, driven by a young population and rising smartphone ownership.
The move comes as regulators tighten oversight. the Higher Education Commission issued new guidelines in March requiring companies to store customer data locally and to report security incidents within 72 hours.
Why it matters
Government officials welcomed the development. A spokesperson for the Securities and Exchange Commission of Pakistan said the initiative "aligns with the national digital agenda" and promised faster approvals for similar projects.
"The infrastructure gap is real, but it is closing faster than most people realise."
Omar Farooq, security researcher at JazzCash
Several competitors have made similar bets. Easypaisa expanded into Hyderabad earlier this year, while TikTok has been quietly hiring engineers in Lahore and Islamabad.
The view from investors
Industry observers say the timing is significant. Pakistan's software exports sector grew 55% last year, according to the National Incubation Center, even as venture funding across South Asia slowed sharply.
Key points
- Funding round values the company at about $50 million
- Regulatory approval from the Federal Board of Revenue still pending
- Rollout begins in Hyderabad and Islamabad before expanding nationwide
- New features will support Urdu alongside English
Not everyone is convinced. Critics point to a shortage of skilled engineers, unreliable power supply and a tax regime that changes almost every budget cycle as reasons for caution.
The broader picture is one of steady growth. Internet penetration now exceeds 42% of the population, and mobile broadband subscriptions have more than doubled since 2021.
Reporting by the WritePures newsroom. Have a tip? Contact our editors.
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