Fintech startup ZAR raises $12.9 million in funding, led by a16z

ChainCatcher news, venture capital giant Andreessen Horowitz (a16z) led a $12.9 million funding round to support fintech startup ZAR in promoting dollar-backed stablecoins in Pakistan.

Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst participated in this funding round. ZAR innovatively distributes stablecoins through local convenience stores, phone booths, and remittance agents, allowing users to exchange cash for stablecoins stored in their mobile wallets by simply scanning a QR code at participating stores, which are connected to a globally usable Visa card.

This model specifically targets over 100 million unbanked adults in Pakistan, without requiring users to understand blockchain or cryptocurrency technology. ZAR was co-founded by Sebastian Scholl and Brandon Timinsky, who previously sold their mobile wallet startup SadaPay to Turkey's Papara. The company has received positive early feedback in urban centers in Pakistan, with total funding reaching $20 million, and plans to expand the model to the African market by 2026.