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Accelerate Prosperity

Accelerate Prosperity (AP) is a global initiative of the Aga Khan Development Network (AKDN) in Central and South Asia, which follows guidance from the Aga Khan Foundation (AKF) Board to develop more formal structures to catalyze enterprises within AKDN’s main area development programs, where economic opportunities remain insufficient. Through patient capital and tailored business advisory to startups and businesses, AP complements broader employment-related programs of AKF and draws significantly on technical expertise from the Aga Khan Fund for Economic Development’s (AKFED) Industrial Promotion Services (IPS), and coordinates efforts with the AKDN’s financial institutions, the University of Central Asia and many other national partners.

AP’s approach combines financial and non-financial support, recognizing that standalone business development services and traditional bank financing are inadequate to catalyze start-ups, grow small firms, and deliver job creation in fragile and emerging markets, particularly for marginalized groups in rural areas.

Terms of Reference

Purpose:

The purpose of the study is to assist AP in making investment decisions within Pakistan’s FinTech landscape. AP’s goal is to promote local businesses and startups in achieving scale through subsidized financing. It is expected that by the end of the study, AP team will have sufficient understanding of the market to be able to make informed investment decisions within the FinTech market.

Scope of Work:

1. Global FinTech landscape:

• Key global types / verticals / segments
• Mapping of typical key stakeholders in the FinTech ecosystem and roles
• Evolution of global FinTech space and trajectory
• Lessons learnt from comparative economies

2. Pakistan’s FinTech landscape:

• Key active types / verticals / segments
• Main stakeholders and key players in the ecosystem and their roles
• Regulatory compliance requirements (SECP, SBP, NADRA, PTA, etc.)
• Current landscape, growth, market shares and future opportunities & trajectory

3. Deep dive into key risks (including market, regulatory, commercial and financial) with identification of key metrics / indicators for risk rating of FinTech entities. Global case studies to be provided. Special consideration to be given to the risks pertaining to loan sharking, money laundering, pyramid schemes and illegal flow of funds.

4. Deal activity in FinTech space (global and domestic funding, M&A activity) and comparison with overall global deal activity. Useful valuation benchmarks e.g., transaction comparable, public comparable etc. to be identified.

5. Critical analysis of social and economic impact of FinTech space

6. Critical analysis of startups in the ecosystem from an investment point of view. Startups from different categories / verticals to be covered (up to 5). The analysis will take the shape of a commercial and technical due diligence.

Deliverables:

1. Final FinTech market landscape study report.
2. Due diligence reports (covering commercial, regulatory, market and technical assessment) on up to 5 startups within the FinTech landscape of Pakistan. AP will connect the consultant with relevant startups for this purpose.
3. 1-day workshop to present report findings to AP team.

Proposed Time Period

Engagement is expected to start by 1^st March 2024. Timeline for completion of the engagements is expected to be 2 months from the start.

Payment Terms

Payment will be made on a per unit (business) basis after submission of required deliverables for that business as per the below schedule:

Financial fee submitted should be inclusive of all travel expenses and taxes.

Application Requirements

Technical Proposal:

1. Profile of the Firm / Individual
2. Relevant Credentials / Past Work Experience (not older than 5 years at the time of submission)
3. Execution Methodology & Workplan
4. CVs of Key Engagement Staff

Financial Proposal:

Detailed breakdown of total cost of the engagement and total quote inclusive of all applicable taxes, and travel and other incidental costs.

Proposal Submission

Proposals are to be submitted latest by COB 5^th of February 2024 via email to procurement_appk@akdn.org.