Dhaka-based ride-hailing startup Pathao is set to launch a digital payment and wallet service in May this year.
In an interview with CNBC on Thursday, Pathao CEO Hussain M Elius said the e-transaction service has been in development for some time and would be launched next month.
“Payment is a big challenge in the country. Bangladesh is a cash-based economy, and most transactions take place through cash. However, we are very excited to move into the e-transaction space,” he said.
Riders will be able to top up their e-wallet before hopping on a ride or from the driver after a ride. Pathao plans to use its existing driver network as a distribution channel for its digital wallet.
Founded in 2015 by Hussain Elius, Shifat Adnan, and Fahim Saleh, Pathao began as a delivery service in a venture experiment with now-defunct business building platform HackHouse. In 2016, the company entered the transportation sector with a fleet of 200 motorcycles.
The company says it now serves thousands of commuters on a daily basis.
In November last year, Indonesian ride-hailing service Go-Jek reportedly co-invested around $2 million in Pathao as part of its Series A funding. The startup has just raised another round of investment at a valuation of over $100 million.