The Pakistan Credit Rating Agency Limited
28-Nov-23
Analyst
Muhammad Atif Chaudhry
Atif.Chaudhry@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jul-23
- Methodology | Non-Banking Finance Companies Rating | Jun-23
- Methodology | Rating Modifiers | Apr-23
Related Research
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PACRA suspends the Entity Ratings of Abhi (Pvt.) Limited
| Rating Type | Entity | |
|
Current (28-Nov-23 ) |
Previous (28-Nov-22 ) |
|
| Action | Suspended | Initial |
| Long Term | - | A- |
| Short Term | - | A2 |
| Outlook | Stable | |
| Rating Watch | - | - |
PACRA assigned initial ratings to Abhi (Pvt.) Limited in Nov'2022. The Company embarked on a program to upgrade their systems and controls, in line with industry best practices. The Company switched their ERP system and changed the accounting entry system. These upgrades and changes took time and therefore the finalization of the accounts was completed in November 2023 for the period ending on 31st Dec'22, as per the management representations to PACRA. Consequently, the management was not able to share the audited accounts in time to help assess the rating opinion, which is completing its annual cycle today. PACRA, after consultations with the company, has temporarily suspended the rating opinion of Abhi (Pvt.) Limited (APL) with immediate effect. The ratings will be reassessed when the required information is made available. The company’s management intends to restart the process soon.
About
the Entity
Abhi (Pvt.) Limited is a fintech startup with an NBFC license incorporated under the Companies Act, 2017 on April 20, 2021. Their flagship product is Earned Wage Access, while invoice factoring and payroll financing is also available. The Company is 99.99% owned by Abhi Fintech Limited, which in turn is 100% owned by Abhi Limited. Abhi Limited is primarily owned by the co-founders - Mr. Omair Ansari (20.21%) and Mr. Ali Ladhubhai (19.33%) while the remaining shares are owned by renowned VCs.