ZERO funding rounds in February. Back-to-back dry months. It’s been three weeks since the elections, but no prime minister yet.
Amidst this desolate backdrop, SadaPay was acquired for $50 million. Cue the applause or a collective head scratch.
Let’s do some napkin math.
Total funding: $20 million.
Post-money valuation: $100 million. (low-end: $90m; high-end: $120m)*
VC ownership after the last round based on $100 million post-money: 20%
Acquisition amount: $50 million.
Sadapay raised a total of $20m across multiple rounds and was last valued at a post-money valuation of $100m. This translates into a 20% VC stake. Then comes the acquisition for $50m. That's a $10m return for the VC and a loss of $10m.
To me, this reads like a Greek tragedy. This wasn't an acquisition; it was a fire sale.
SadaPay wasn't just another fintech player; it was the beloved brand of millennials and Gen Zs. A brand synonymous with positive vibes. A symbol of modernity and optimism in a sea of status quo.
Ideally, an acquisition is a joyous moment for all stakeholders involved. Yet, the case of SadaPay is a sobering reminder of the harsh ground realities in Pakistan.
*All amounts are publicly available and not countered.
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🎙️ Listen
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Conversation with Huzaifa Ahmad, co-founder of RIZQ, and Gohar Shafique, founder of We Want Design.
Until next month, ✌️