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ZAR, a Pakistan-based fintech startup, has raised $12.9 million in funding led by Andreessen Horowitz (a16z) to power its mission of bringing stablecoin-based financial services to millions of unbanked citizens across the country.
The round also saw participation from Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst, marking one of the most high-profile crypto-related investments in Pakistan’s emerging fintech sector.
With a population of about 240 million, including more than 100 million unbanked adults, Pakistan represents one of the largest untapped markets for financial technology innovation in South Asia. ZAR aims to bridge this gap by offering a cash-to-stablecoin conversion network that enables users to access digital assets without traditional banking infrastructure.
The company’s model is built around partnerships with local neighborhood shops, payment kiosks, and remittance agents, allowing individuals to instantly convert cash into stablecoins—a move expected to boost financial inclusion and digital participation.
Unlike previous initiatives that depended heavily on smartphone penetration, ZAR’s hybrid model focuses on accessibility and convenience, reaching users through existing community financial channels.
The startup’s launch comes amid the rollout of Pakistan’s Virtual Assets Ordinance 2025, which established the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee digital asset activities and provide a legal framework for crypto and stablecoin operations.
Analysts say the timing is strategic, as the new regulatory clarity could accelerate adoption of blockchain-based financial products and help unlock alternative payment systems for Pakistan’s growing digital economy.
By leveraging stablecoins as a bridge between cash and digital finance, ZAR aims to reshape how millions of Pakistanis store, send, and spend money—potentially setting a new benchmark for fintech-driven financial inclusion in emerging markets.
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