Andreessen Horowitz, known as a16z, is backing a young startup called ZAR, which aims to bring dollar-based digital money to everyday users in Pakistan. Instead of using banks, people would get stablecoins through local shops they already trust.
A Bloomberg report shared that the company has raised $12.9 million in a fresh funding round, bringing its total to about $20 million since its launch. Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst also joined the round.
ZAR is building a service that lets people exchange cash for digital dollars at neighborhood shops. Local corner stores, phone kiosks, and small money agents would act as on-ramps. A customer can walk in, scan a QR code, and hand over cash to receive digital money in a mobile wallet. The wallet is linked to a Visa card, which allows users to spend those funds like regular payments.
Why it matters for Pakistan
The model is aimed at people who mostly rely on cash and do not use formal banking. Pakistan has one of the world’s largest unbanked populations, and many residents already depend on small shops for everyday financial transactions. ZAR is positioning these shops as a low-friction entry point to digital payments.
The rollout also comes at a moment when Pakistan is putting clearer rules around crypto use. Under the new Virtual Assets Ordinance, the government has created the Pakistan Virtual Assets Regulatory Authority (PVARA) to license and monitor crypto businesses.
The authority is responsible for checking compliance and setting basic standards so these services operate within a regulated framework. Pakistan has also opened its first licensing process for crypto firms, allowing regulated exchanges and service providers to apply for permission to operate in the country.
If its pilot in Pakistan succeeds, ZAR plans to expand to countries in Africa starting in 2026. The company was co-founded by Sebastian Scholl and Brandon Timinsky, who previously sold their digital wallet startup SadaPay to Turkey’s Papara in 2024.
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