Vladimira Bristenska and Nadeem Shaikh, Co-founders of Neem: How embedded finance works in Pakistan

In the newest podcast episode, I speak with Vladimira Bristenska and Nadeem Shaikh, co-founders of Neem. Neem is a fintech and embedded finance infrastructure provider in Pakistan. Emerging markets like Pakistan are often fascinating because the market dynamics, leapfrogging of technology, and adoption of new services are so different from those of Western countries.

The conversation explores Pakistan's rapidly evolving FinTech landscape, focusing on how embedded finance is helping bridge the financial inclusion gap in one of the world's most populous nations. The founders share their journey from international finance and policy backgrounds to building a B2B embedded finance platform in an emerging market.

Key Market Insights about Pakistan

• Pakistan is the world's 5th most populous country with over 230 million people

• 64% of the population is under 30 years old

• Mobile phone penetration is around 80%, with internet usage at 50% and growing

• Home to the world's 3rd or 4th largest freelance community

• Significantly underserved in terms of financial services, especially in B2B segments

Embedded Finance Landscape

• Traditional banks have limited reach, with significant gaps in financial inclusion

• Telco players like Jazz and Telenor led early mobile money adoption

• Market is seeing rapid digitalization across sectors like healthcare, agriculture, and logistics

• Trust is built through non-financial platforms, making embedded finance particularly effective

• Focus is primarily on payments and lending, with insurance and investment products to follow

Neem’s Approach and Business Model

• Positions as an infrastructure provider enabling non-financial businesses to offer financial services

• Partners with established digital platforms that have loyal customer bases

• Provides comprehensive solution including payments, banking, and lending capabilities

• Works across multiple sectors including healthcare, agriculture, and mobility

• Focuses on B2B solutions rather than direct-to-consumer services

Challenges and Opportunities

• The market requires different approaches compared to Western FinTech models

• Opportunity to leapfrog traditional financial service evolution

• Fundraising requires educating international investors about market dynamics

• Strong potential for growth due to young population and increasing digital adoption

• Need for long-term investors who understand emerging market characteristics