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Wednesday, September 28, 2022

Pakistani startups raised $375 million in 2021, 2 x times more than the last 6 years combined

Last year, Pakistani start-ups raised almost $ 375 million, more than doubling their cumulative investment over the previous six years. The inflow of foreign cash into Pakistani enterprises, which began during the coronavirus outbreak, has continued unabated, and the startup scene in the world’s fifth-largest country is about to explode.

According to statistics from startup investment advising platform Alpha Beta Core, Pakistani businesses got the highest proportion of logistics finance (32%), followed by e-commerce (27%), fintech (25%), and tech and health tech (25%).

It was 4% of the total. In 2021, Pakistani start-ups raised more than $ 375 million, more than double the total raised in the previous six years, according to Khurram Schehzad, CEO of Alpha BetaCore. “Investment in Pakistani start-ups is increasing at a rapid pace.” Another group that analyzes the flow of money to entrepreneurs, Invest2Innovate (I2I), has invested $ 350 million.

There were $ 231 million worth of deals between 2015 and 2020, according to statistics given by Invest2Innovate and Arab News, compared to 81 investments by Pakistani start-ups in the final year. With a Series B investment round of $ 85 million that ended in August this year, Airlift Technologies is Pakistan’s largest single private funding round in history. B2B Marketplace Bazaar raised $ 30 million, Tajir raised $ 17 million, and FinTech company TAG raised $ 17.5 million.

Last month, beauty and fashion entrepreneurs Bookme and Bagallery, both online travel and ticketing platforms, raised $ 7.5 million and $ 4.5 million, respectively, in a Series A investment.

In a pre-seed fundraising round, Krave Mart, Pakistan’s first introduction to QuickCommerce, raised $ 6 million to expand its operations in the port city of Karachi and other major cities. According to Schehzad, the value of startups in 2021 will be more than $ 1.5 billion, which is five times (or 400 percent) more than the value of startups in 2020, which was $ 300 million.

According to experts, funding will continue to rise in 2022. Because Pakistan has 188 million mobile customers, 107 million 3G/ 4G users, and 110 million Internet users, it is a big untapped market.

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