Lahore-based digital lending platform AdalFi plans to raise up to Rs 652 million (around $2.35 million) through a public offering next month. If successful, the AdalFi IPO will make history on the Pakistan Stock Exchange by becoming the first fintech company ever to list on the PSX.

What Is AdalFi and How Does It Work?

Kewan Khawaja and Salman Akhtar founded AdalFi in 2021 in Lahore. It operates as a subsidiary of Techlogix, a well-known Pakistani IT services company.

The company functions as a B2B2C fintech that uses proprietary technology to score financial transactional data already held by banks. In plain terms, AdalFi connects banks with customers who have never had a loan before, using artificial intelligence to decide whether a person or small business is likely to repay.

Under its business model, banks provide the funds and keep the loans on their own balance sheets, while AdalFi earns a share of the income and takes on part of the lending risk. This means AdalFi does not lend its own money; it is the technology layer that makes the loan possible quickly and safely.

The platform has helped move more than Rs 110 billion in loans since it was founded, according to the company. That is a significant number for a startup that is only a few years old.

Why the AdalFi IPO Matters for Pakistan

The proposed offering would make AdalFi the first fintech to list on the Pakistan Stock Exchange and one of the few startups to enter the country's public market. This is a big deal. Most Pakistani startups raise private money from venture capital funds and never go public. AdalFi is choosing a different path.

According to Bloomberg, the company plans to raise as much as Rs 652 million ($2.35 million) by issuing new shares at the Pakistan Stock Exchange. The funds will be used to grow its Islamic lending and small-business loan products, which are two of the fastest-growing areas in Pakistani finance right now.

The Islamic finance push is especially important. A large part of Pakistan's population avoids conventional interest-based loans for religious reasons. By expanding Shariah-compliant products through its bank partners, AdalFi can reach millions of customers who are currently left out of the formal lending market.

Pakistan's Record IPO Year Sets the Stage

The timing of the AdalFi IPO is not random. Pakistan's stock market has had a remarkable run, and companies are keen to raise money while confidence is high.

The planned listing comes amid a record year for Pakistan's IPO market. According to data compiled by Bloomberg, 13 offerings have raised a combined Rs 23.1 billion, marking the busiest year ever for listings in the country.

The Securities and Exchange Commission of Pakistan (SECP) approved ten IPOs for listing on the PSX during the first half of 2026 alone, with nine companies already completing their offerings and raising more than Rs 20 billion through public sales.

The strong IPO momentum came despite regional uncertainty and geopolitical tensions, showing the resilience of Pakistan's capital market and sustained investor confidence.

A record 24,000 investors were added in a single month, taking the equity investor base above 545,000, with participation driven largely by younger investors. This growing base of retail investors gives companies like AdalFi a real audience when they go public.

The Credit Gap AdalFi Is Trying to Fill

There is a very practical reason why a fintech like AdalFi matters in Pakistan.

According to a survey by the non-profit Karandaaz, only 30 per cent of adults in Pakistan have access to formal banking services and mobile wallets, making the country largely unbanked with limited access to credit. That means roughly 70 per cent of Pakistani adults cannot easily get a loan from a bank, even if they have money coming in regularly.

AdalFi uses AI-powered credit scoring and underwriting models to provide instant loans to consumers and SMEs in Pakistan, including unsecured products such as term loans, credit cards, and revolving finance facilities.

Financial institutions that have signed up with AdalFi include UBL, HBL, and Meezan Bank, among other banks and microfinance banks operating in the country. Having Meezan Bank on board is especially significant for the Islamic finance side of the business, as Meezan Bank is Pakistan's largest Islamic bank.

Backed by Serious Investors

AdalFi did not arrive at this IPO stage without support. In February 2023, AdalFi raised $7.5 million in a funding round led by UAE-based COTU Ventures and Chimaera Ventures, Pakistan-based Fatima Gobi Ventures and Zayn Capital, and angel investors. The company has also gone through the Google for Startups Accelerator program, adding to its credibility.

An IPO is the natural next step for a company that has proven its model works at scale. By listing on the PSX, AdalFi can raise fresh capital from the public, increase its visibility with banks and businesses, and give its early investors a way to see returns.

What This Means for the Pakistani Fintech Sector

If the AdalFi IPO goes through, it will be a signal to the wider Pakistani startup ecosystem. Right now, most local founders see venture capital as their only funding option. A successful public listing by a fintech startup shows that the PSX is open to technology companies, not just traditional industries like textiles, cement, or banking.

Pakistan's fintech sector has grown fast, but funding has been inconsistent. Pakistan's tech ecosystem is benefiting from record ICT exports, a more stable investment climate than the country has seen in years, and a talent pool actively shifting toward higher-value AI and SaaS work. A public listing gives AdalFi a more stable base to build from, away from the ups and downs of private venture funding.

For everyday Pakistani users, the AdalFi IPO could eventually mean more access to fast, fair, and Shariah-compliant loans through whichever bank they already use. The technology works in the background, but the impact is felt at the front.