December 2, 2023
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Pakistani Startups Raise $328m, Despite Multiple Startups Failing

Ali Imran 130 Comments , , , , ,

Even though Pakistan has had numerous cases of startups failing, businesspeople have nonetheless been able to raise $328 million in funding in the first nine months of 2022.

In spite of increased investor scepticism brought on by geopolitical unrest and growing concerns about a global economic downturn, Pakistani entrepreneurs raised $328 million in total in the first nine months of 2022. According to the Deal Tracker of Alpha Beta Core, this is 87% of the entire funding in 2021.

“Early-stage deals made up 90% of all agreements made in the third quarter of 2022, which saw increased deals at the seed and pre-seed levels. According to Alpha Beta CEO Khurram Schehzad, “the average contract size in the third quarter of 2022 was $60 million, up from $7.3 million last quarter.

Kapeel Kumar, a startup investment specialist, stated that “the more room for failure we leave, the more we also create potential for success in its aftermath.

Pakistan is one of the few untouched frontier markets, he said, adding that this is the only reason the nation is experiencing a growth.

Fintech, logistics, and B2B or B2C e-commerce receive the majority of investments. As the ecosystem begins to develop, this pattern is apparent in many emerging markets, he continued.

According to ABCore CEO Schehzad, “the entire deal value in the third quarter was recorded at $48.6 million with a total of 11 deals.”

The top transactions were $17.6 million for DBank, $11 million for OneLoad, $7.9 million for PriceOye, and $4.5 million for DealCart. Other significant transactions this quarter included Neem and SnappRetail, each for $2.5 million, and Mahaana, for $2.1 million, he continued.

“The closing of tech-startups in the last six months is disturbing,” Kumar stated when describing the effects of businesses closing their doors in Pakistan. This will negatively affect Pakistan’s whole startup ecosystem, which is unjust to the many businesses that are operating and providing jobs.

The country’s expanding human capital and increased investments in technological startups, he continued, are “fueling the success of some startups.”

“We anticipate that the 2022 closing will be better than the 2021 closing. Pakistani startups continue to enjoy considerably higher survival rates than the rest of the region or the world (both in terms of size and number), according to Kumar.

According to Noman Ahmed, CEO of SI Global Solutions, “with our enormous population, we have a great potential of growth inside us.”

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