SECP grants licence to Alibaba-backed BNPL firm KOKO TECH Pakistan

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued a licence to KOKO TECH Pakistan (Private) Limited (KTPL) to operate a Buy Now Pay Later (BNPL) business in the country, according to an official statement released on Tuesday.

The company is owned by Alibaba.com Holdings, described in the statement as one of the world’s leading e-commerce and technology companies. The approval allows KTPL to enter Pakistan’s BNPL market at a time when digital financial services are continuing to expand.

According to the official statement, the arrival of Alibaba-backed KTPL is an important development for Pakistan’s digital financial landscape and reflects international interest in the country’s large consumer market, growing digital economy and untapped financial services sector.

The statement said KTPL is expected to bring AI-based credit assessment systems and digital infrastructure that has already been tested globally. These tools are expected to support new data-led lending products in the BNPL segment.

The move could widen access to consumer financing, especially for younger users, freelancers and small businesses that have remained underserved by conventional banking channels. The statement noted that traditional banks have often been hesitant to lend to these groups because of perceived risks and the absence of formal documentation.

The development was also described in the statement as a direct inflow of foreign investment into Pakistan’s financial sector. This indicates that international investors are taking note of the country’s improving regulatory environment and rising digital adoption.

According to the statement, KTPL’s backing by Alibaba’s global experience and financial strength places the company in a position to support small and medium enterprises and contribute to increased e-commerce activity in Pakistan.

Digital finance and investment signal

The licence marks the formal entry of a foreign-backed player into Pakistan’s BNPL space under SECP regulation. The official statement linked the development with broader confidence in the country’s digital economy and financial technology potential.

The combination of international capital, technology and digital lending tools could help serve market segments that have not been fully reached by existing financial institutions. The statement particularly highlighted young consumers, freelancers and SMEs as groups that may benefit from improved access to financing.

The official statement further presented the licence as a sign of growing investor confidence in Pakistan’s regulatory framework and digital market, while also underlining the potential for greater activity in online commerce through support for businesses and consumers.