Pakistan’s startups have attracted $32 million in funding from various sources during the first four months of the current financial year. Local startups received $15 million in the first quarter and $17 million in October. The investment climate for startups began to show signs of recovery, with three new deals in October totaling over $17 million.
COLABS and Abhi secured $2 million and $15 million, respectively, while Farmdar raised an undisclosed amount. Venture capital firm Sarmayacar secured $15 million from the UN’s Green Climate Fund, earmarked for startups combating climate change.
Investment climate shows signs of recovery
The month also saw significant M&A activity, with TRAX merging with Secure Logistics Group Limited and Trikl being acquired by Elphinstone. Aly Fahad, a facilitator for the startup ecosystem, noted that startups succeeded in attracting funds due to the improving economic situation in Pakistan, following the resumption of the IMF program and positive Fitch Ratings for the country. The State Bank of Pakistan reduced the policy rate to 15 percent as part of efforts to stimulate economic growth and manage inflation.
The role of the Special Investment Facilitation Council is encouraging for attracting foreign direct investment in the country, according to the CEO of Paklaunch. Venture capitalists and investors are optimistic about the improving economic situation and plan to fund startups in Pakistan. At the recent Singapore FinTech Festival, overseas Pakistanis, investors, and tech companies highlighted strong indicators of the Pakistani economy and pledged to collaborate with high-potential startups and fintech operators.
