ZAR raises $13m to bring digital money to Pakistan

October 28, 2025 (MLN): ZAR, a fintech startup aiming to make dollar-based digital money accessible to everyday Pakistanis, has raised $12.9 million in a new funding round led by Andreessen Horowitz (a16z).

The latest investment brings ZAR’s total funding to around $20m since its launch, according to a Bloomberg report. Other investors in the round include Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst.

The company is building a network that allows people to exchange cash for digital dollars at neighborhood shops including local convenience stores, phone kiosks, and small money agents.

Customers can visit a participating shop, scan a QR code, and hand over cash to receive digital funds in a mobile wallet. The wallet is linked to a Visa card, allowing users to spend those funds like regular money.

ZAR’s model targets Pakistan’s large unbanked population, many of whom depend on cash and small local shops for financial transactions. By leveraging these existing networks, the startup hopes to lower barriers to entry for digital payments and introduce stablecoin use in a familiar way.

The launch comes as Pakistan introduces new rules for the crypto industry. Under the Virtual Assets Ordinance, the government has created the Pakistan Virtual Assets Regulatory Authority (PVARA) to license and oversee crypto-related businesses.

This new framework establishes compliance standards and opens the door for regulated exchanges and service providers to operate legally in the country.

If its rollout in Pakistan proves successful, ZAR plans to expand into several African markets by 2026.

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